KICK UP the volatility to redline the anxiety meters for short positions. The fishing waters have been stirred and the first reaction to Sell the RUMOR, negative report, has given the Buy the FACT reaction. The FACT was negative as expected from 3 months of a downhill slide, dirt cheap pork compared to high priced hamburger, 5 waves down off of the mid Nov high which sets up a high percentage 50% retracement rally to begin soon as the base of the LAUNCHING PAD is built over the next 3-6 weeks of waiting for the seasonal demand to kick in. Yes we can still have new lows but the downside risk is far less than the upside risk at this point. The fundamentals don't sing that song, so the bears will continue to do what has been working but cry foul when the LAUNCH kicks in.

This is the futures market and soon the futures will be testing upside targets to set up the pivot for the LAUNCH lift off for the weekly chart gap at 86.60 which is the upper level of the gravity zone. The 50% retracement is also at the 86.00 area for the June contract. With the current fundamental psychology, 80.00 would be a surprise and 86.00 would super size that surprise. I can make a case that June still has another drop to 70-71 but for every official chart low or chart high, there is always another projected target that doesn't get hit. The fishing waters have been stirred to set up the typical $5 trading range for hogs between 72.00 support and 78.00 resistance which will also stir the emotion trade for good fishing as we have witnessed today. My bounce line and downtrend line call for a test of 80.00 for June hogs further down the road, if it stays above the 70-72 potential support area the next 3 weeks. A $10 rally with the seasonal addiction for some sort of rally is not that difficult for the hog market to do on profit taking alone. The SURPRISE element even adds to the likelihood.

I do believe I have good fishing weather for the next several weeks the bulls and bears battle over this $5 trading range. I did snag another 60 cent deposit on the last hour retest of 75.70 early morning upside breakout. A daily close above 75.72 would be a very positive close which would give me no other choice but put another long on at 75.70 with the expectation of a test of the 77.00-77.20 resistance target which I believe is now marked to get that desired kiss. A daily close above 75.72 is required to convince me to risk holding it into tomorrow morning.