Cows and price action

Ed Seykota once said there's a lot in common between bond price movements and the way cockroaches crawl up and down a wall.

I've been watching cows for a while now and see the same thing!

Let me explain.

There are two modes of cow movement:

1. wandering around

2. one starts to run and THEY ALL RUN!

For shepherds, you never want them to take off and run and I'm sure the same is true for CEOs of companies.

For speculators, there is a tremendous incentive to freak them out and induce a MANIA!

Just one cat's perspective (no relation to the other one livestreaming his pump job right now)

 

False equivalence. I've been following live cows for quite a bit. They are sticky above the 175 level.

 

Cattle certainly know not to eat into the wind, you will see a herd all pointed same direction downwind.

Use to be fine market to long term trade but since March of 2023, been in a range. Have done nice day trading on 5 minute few times a day waiting for long term turn down...

 

Cattle futures. The herd has been wandering into the sky for years, then ran downhill and back up again. If only we could read their brains for the psychological switch, into PANIC MODE!

 

I see what you did there..... didn't get it at first!

 

Do they ever get suspicious?

 

There is another mode of cow action that will materialize when they're not in a panic.

1a: Magnet Mode

They follow trails, fence lines, each other (they make that moo sound as a "shout out"), and a bull will wander for miles after the scent of a female that may be fertile. Then he will sit and wait for days until she wanders by.

This reminds me of volume profile (shown on the right vertical axis) which reveals how many transactions happen at each price level. They seem to line up with horizontal supports.

Price tends to run between the "hills" of this volume profile, or it just snaps back like a magnet.

Just like the wandering few cowz across my fence who keep trying to go home to their companions, then change their minds and wander back!

 

Lol, no.

 

That video shows what's needed to contain the beasts when they're in PANIC MODE.

But did you know they will obey a single seventeen guage metal wire (holding 7000 volts), suspended from a 5/8" fiberglass pole, when they're in Wandering Mode?

The transition from Wandering Mode to PANIC MODE is the golden pivot all trend traderz wait for, sometimes for weeks, not unlike a strapping bull on the scent of a heifer in heat!

 

The cost of raising cows could be mooving up.
https://apnews.com/article/denmark-cow-tax-greenhouse-gases-9a570518639e0a1990806fd1a05ac11a