It's been an impressive rally in the cattle market since the May 2013 low. In fact the DJ Cattle Index (a has risen 22% in 12 short months. The index has gone practically parabolic since May, up almost 8%. I continue to keep a close eye on the $76.50 index level, we've come a long ways even if we break above resistance. It's hard to imagine how much staying power this rally will have as it's been a real battle between bulls/bears this week. Live Feeder Cattle futures finished limit down on Wednesday, followed by limit up on Thursday.
Treading lightly here, this is the third attempt at this level and I'm not betting that 3rd time's a charm. Buying a few deep out of the money (way out of the money) Put options isn't a bad insurance policy.
(Chart via StockCharts.com)