12/1/15 was up +$0.46 to 56.03. That puts the ZZZs premium to the component by +3.17 and we now get nine more days of data before cash settlement. Packers do have the Purchase Index on an up-trend now and their stronger bids are now beginning to move the CME Index up. This may be setting the stage for a trading range until the ZZZs expire. I'm suspecting the GGGs may be the beneficiary of this up trend more than the ZZZs.

Scalping with the Trend Line reversal method has put a few shekels into my bank account this morning. I think this approach works when ITZ gets a sucker on the line. When he catches a big fish, this method sees my margin take a hit so I have to mind my stops!

It appeared for a minute that I was going to get to take a trip to the bank with a short Z/G spread this morning, but then the market turned. I may end up with a bunch of long GGGs and I am becoming comfortable with the idea that the GGGs may push higher after the holidays. That may be spelling trouble because I generally get burned when I develop a fairly strong directional bias.

The six-day moving average carcass weight was up to 213.74#. That is -2.29# yr/yr.

Best wishes,

dhm