MURICO.com Forum

The Final Purchase Index for - - -

8/12/14 was down -$1.85 and the model projects that the CME Index component on the 8/12/14 kill will plummet by something like -1.20 to -1.50. The Index is heading downhill in a hurry.

But -

It has a ways to go with the QQQs discounted to the Index by -4.34 at last night's settlement.

If we get the down 1.50 on the component for yesterday's kill, then it takes a drop of -1.85 for the next two days to get the Cash
Settlement Index down to match up to the QQQs.

Packers may have too many expensive hogs already purchased to drop the index that quickly so I'm sticking with some long QQQs to take to cash settlement as well as a couple of Q/V spreads. I want you to know that I am not married to these long
QQQs and if I get a decent scalping opportunity, I will dump some with the hopes of being able to buy back on a dip. There is still enough uncertainty about the cash settlement Index over the next three days to keep life interesting.

The Z/G spreads are giving me a nice ride down hill and I continue to think the ZZZs are overpriced relative to the GGGs.

Best wishes,

dhm