The collapse in the CME Index is something like we have never seen before. It has blistered me, let me recover and now it looks like the recovery may continue for a bit. I continue to look at the heavy carcass weights and the fact that the kill since 6/1/14 is about 500K below projections.

That just might set the stage for some heavies to make a mad-dash for the barn door and cause the decline to continue a bit further. I tell you this, I'm not very anxious to get long the VVVs!

I think this market has been a nightmare for producers to try to hedge their production.

I just scalped out of one of the QQQs and am looking for a dip to get it back. I have some more long QQQs so will still be alive if the rally continues. My model is now projecting that the cash settlement index will be 114.89 with a range of 114.39 to 115.39 so this should be good scalping territory from the long side.

Best wishes,

dhm