alerted me about the potential of the long K/M spread, I have essentially always either had some long K/M spreads or orders working to buy some and they really treat me well. It takes a lot of patience to trade them. That's one of the virtues of coming from one of the tinkering professions - you do something, send the patient home and say, "Let's see how that works out."

And then you wait.

And so it is with the K/M spread. You put it on, set your profit target and wait. If it moves against me, I just add another one and another one. Generally market noise will let me dump a few before my boat gets too heavily laden.

Very often packers get caught short-bought in front of the Memorial Day holiday and that gives me an opportunity to dump them all.

Yes, indeed. The long K/M spread is my favorite trade. Right now, though, I am a little nervous thinking it might crash to the -8.525 level again and sink my boat. I don't think the market dynamics are right for that to happen but as our dearly departed friend Long Bear said, "In the hog market you can always expect the unexpected."

Best wishes,

dhm