(This has been copied over from our FDates private forum)

Lean Hogs went to the daily OS extreme today (8/20) and found support at time/price support.

\image{lh daily}

As you can see on the daily chart above, we had a lower swing top confirmed for our last FDate, which is the Sell Setup I personally took and you watched traded in real-time in the Rick's Real Money Trades section of this forum. You may also note that my profit target was just 40 ticks off the current supported low for some nice quick profits.

Now if you look at the FDate Report, you will see that the next DTD is 8/19. Clearly 8/20 is lower than 8/19 low. The 8/20 price bar is ONE DAY off the forecasted DTD. This is the limit of acceptability and it INCREASES the probability for a DSB to form off this price bar.

When you couple this increased probability of a +1 price bar with the fact that its low is at time/price support and it is deep inside OS territory (the red area on the chart above), you have the makings of an extremely high probability swing bottom ready to form.

With that said, however, for the benefit of our newer members I will make the reminder that this is not one of our Buy Setups. Why? Because a swing bottom here would be lower than the last swing bottom formed off the 8/12 price bar.

Yet the decision to risk it is up to you, of course.

Right now the directional picture appears to be a DSB for now with a following DST for the 8/25 DTD. If a potential lower swing top price bar were to form inside DTD 8/25, I'd call that a good Sell Setup situation to lead prices down its final leg in order to complete by making a WSB for WTD 8/29.

And that's the outlook for Lean Hogs at this time.

Cheers!
:)
Rick

Definitions of Abbreviations:

DTD = Daily Turn Date
DSB = Daily Swing Bottom
DST = Daily Swing Top
WSB = Weekly Swing Bottom
OS = Oversold
WTD = Weekly Turn Date