2/24/16 was up +$0.41 and the model projects that the component on the 2/24/16 kill will be up between +0.10 to +0.40. Yesterday the market dished out the bump-up I was thinking might happen because of an escalating index. There may be more to come or the "Gap" may be wide enough to offer a little resistance to further gains for a while.

A major dip in the index will surprise me.

A significant dip in the JJJs will not surprise me because of the technical/emotional factors that come into play from time to time.

Yesterday I was able to hustle off to the bank with so profits from selling some long K/M spreads that had been lounging around for a long, long time. I still have plenty more but that frees up a little space on deck to pile some back on if the K/M spread dips below -4.00. Farmer Ed says they are safe at or below -3.00. It seems to me that -4.00 adds another layer of safety but it is not without risk.

Last year the K/M spread dipped to -8.525 on 3/24/15. That would be some hair cut on a boat load of K/M spreads loaded up at -4.00!! I would point out that the spread did rally to -2.28 at cash settlement. The message seems to be, "Don't over-load that boat!"

Best wishes,

dhm