can be a lucrative endeavor or a royal PAIN in the rear. I prefer to keep a mindset of trading each side as an individual entity and when your really lucky each side of the spread builds your bank account. When the luck is shining on somebody else, the frustrations grow quickly and your bank account can shrink just as fast. I stumbled onto trading the cattle hog spreads by accident by trading both sides individually a number of years ago. This got me thinking and researching and I came to the conclusion that there were 2 contract months June and Oct that consistently gave the cattle hog spreads a consistent, high percentage of LUCKY REWARDS of 15-20 dollar spread profits.

The hard part is when do I put it on(I prefer legging in) and riding the spread long enough for the paint to dry. I have never had the LUCK of riding for the max reward. This year I came close but was scared out by the bullish look of the cattle market and I had to make the choice to be long June cattle at 150.00 which at the moment I'm not sure will get to my 156.20 target. I have never traded the Aug cattle/hog spreads but can't say I wouldn't. You do have the correct direction being short cattle/long hogs from my opinion. I will remind you that I have a tendency to frequently hallucinate, so take my opinion with a grain of salt. My opinion is also prone to change quickly because I am a firm believer in doing whatever dance the market chooses.