2/17/16 was up +$0.37 and the model projects that the CME Lean Hog Index component for the 2/17/16 kill will be up between +0.15 and +0.45. Perhaps in response to this, traders have pumped the JJJs up enough to balloon the "Gap" to 5.59 with the JJJs being premium to the component. I anticipate that the "Gap" will close a bit when the 11:00 reports are released.

It is still to far in front of cash settlement to begin projecting a cash settlement index for the JJJs but my bias is that the Index will be strong enough to push the JJJs up a point or two by the time we get to cash settlement.

Based on this, I will try scalping the JJJs from the long side. A couple of small ones worked for me this morning and I'm now long a pair again.

Best wishes,

dhm