We had been watching the Live Cattle Futures market after seeing a 1-2-3 top formation develop over the period of a few weeks. Now, Live Cattle Futures have hit a record high (see Daily Live Cattle chart below). The fundamentals for Live Cattle are that ranchers have far less heads of cattle than historically because the demand for beef has dropped. Therefore, they have shrunk their herds to accommodate market demand. This is driving the price of Live Cattle Futures to new highs. But prices won’t rise forever, and now that a new historic high in Live Cattle Futures has been reached, we will look for a new 1-2-3 top formation over the next several days/weeks.