My question now------is this the last puke before the profit taking rally sets in for an impulse wave to retest old broken support @ 78.00 for Aug hogs OR is this the beginning of another 5-7 dollar leg lower?? Time is running out for the August contract and the downdraft for Oct & Dec could be starting another $10 leg lower. This could get interesting as 70% of my producers refused to think Outside of the Box @ the 72-74 area but now they are screaming in agony. I warned them in early June that the Grime Reaper was on his way, I just didn't know the date of his arrival. The one year that everyone needs to do some hedging and once again the train has probably already left the station.

I talked to one of my proactive thinking producers early this morning and he told me his packer won't take anymore hogs this week. A warning bell went off in my head and I quickly stuck a set of south lines @ 62.70 on Oct hogs with 1st deposit @ 62.30. As time went on another south fishing hole was in place with lines set @ 62.15 that gave me a very productive catch. Once again, I started the day thinking my north lines had a better chance of getting action than my south lines. Actually I didn't even have any setups for reliable south lines. Anyway I added a 2nd short Oct @ 62.70 to go along with my 70.90 that I never expected to keep past 67.00. The door to 57.00 Oct hogs has now been blown open if a $3 impulse wave doesn't start to happen very quickly.

All sorts of weekly chart sell signals have now been triggered. If Aug hogs don't find that bounce to end the week-----we could be looking at a very ugly month of Aug for the hoggies.