Wednesday, April 25, 2012

Cause a stampede -say "Mad Cow"



The easiest way to get a major move in the cattle futures is to announce, "Mad cow." You don't have to say much more and the market will react with sell orders. There can be a reversal if the news proves wrong, but there is an emotional reaction which  is primal.  The USDA randomly tests only 40,000 cows, .1% of the entire herd. In this case, one cow in California turned up with the disease. The market has rebounded slightly on more detailed information on the announcement.

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