is a lot higher than yours. I'm holding 4 long Aug and wondering just how much of a hallucination I'm dealing with. I added my 4th position today with my usual approach of having a pair of fishing lines hit @ 76.50 and making a 50 cent deposit on 1 @ and holding the other to play with. As the day progressed I had this crazy hallucination that Aug hogs might keep hugging 77.00 to set up a potential buy signal. I decided to risk my 50 cent profit and now I know todays thoughts were a hallucination or maybe just a donation trade I'm overdue on. My 76.00 stop just got hit and quickly proceeded to take me out of a second long position at 75.80. I was a bit surprised I didn't get taken out of that one yesterday at a loss.

Still holding 2 and as long as it stays above 75.20 I still have a chance to see if I'm completely crazy or if there is some reality to my hallucinations calling for a retest of 80.00 two weeks out. I'm not in to predicting the future, but I do have to respect my hallucinations and let damage control take me out of these trades since up momentum is still in place as long as Aug hogs stay above 75.00 with a minimal target of 79.50 to complete the started pattern. It looks as if cash has reversed the down trend and is now premium to the Aug contract. I have to believe it will take at least 2 weeks to exhaust that reversal by edging a couple dollars higher. this would put the Aug contract in a position of trying to catch up. weekly chart resistance is now at the 80.17 mark for todays high on the July contract. Generally Aug will try to match that before cash losses whatever up momentum it has started.

There's a lot of bears still believing this market HAS to go down based on what we've seen the month of June. Futures trade forward on what new info may show up. The hog market loves $10 reversals so trading backward based on what's been happening can and has gotten many(including myself) in trouble by thinking a market has to stop going up at the last resistance point that sent it down. That's a good point of reference but most forget that closes above that point(I'm talking 76.97 on Aug) it means something else is going on and the momentum will move it to the next price congestion area up the ladder. Today put the crack in the 76.97 dam, one or two more hits and it could bust wide open. Daily closes above 77.00 will begin the painful process of bears being wrong which brings on panic stops being blown, which in turn can feed on itself. Been there, done that, so the north end fishing waters look good into Aug expiration. The set up is certainly there and it's been awhile since the fish on the north end have been fed.