8/7/14 kill dropped by 1.06 to 120.47. That puts the Index to HEQ4 futures gap at 5.85 with five more days of data to get us to cash settlement. Considering the way packers are hacking away at their bids, it appears that the QQQs may be appropriately priced.

However -

There will be remaining sufficient technical/emotional factors at work to goose the QQQs up, then down and perhaps up again so there will most likely be scalping opportunities to make life interesting. My preference now is to scalp from the short side. I have pulled off one and have another working.

The short Z/G spreads that have been cluttering up my portfolio since 3/19/14 have been working since 6/30/14 and have given me plenty of scalping "In and Out Opportunities" all along the way.

The six-day moving average carcass weight is at 213.48# which is unchanged. It is not often we see that. It is +10.12# yr/yr. Packer hogs were a bit lighter and non-packer hogs were a bit heavier. It appears that packers are running their hogs through their plants perhaps thinking they can buy non-packer producer hogs cheaper later in the month.

Best wishes,

dhm