4/12/16 was down -0.16 to 66.62. The JJJs are now trading discount to the component by -0.17. Yes, indeed, JJJs are in lock-step with the component.

And where is the component headed?

UP!!

But the question is when?

Will it be before the JJJs exire tomorrow or after?

My bias is that packers will not cut their bid prices by much. The declining carcass weight of the Index hogs makes me think that producers of Index hogs are very current in their shipments and packers cannot get them if they bid lower. Packer hogs made up 34.2% of the kill yesterday. That is a bit higher than usual. Perhaps they were killing their hogs because the Index hogs were just not there.

At any rate, I just bought four of the JJJs on this dip and will buy more if they dip lower. One thing is for sure - this will not be a long term trade since they go to cash settlement tomorrow.

Ka!! Ching!!

Ka!! Ching!!!

Ka!! Ching!!

I just made a quick trip to the bank with deposits from three short Q/V spreads that I covered. I was beginning to get weary of those spreads! Sometimes it does take patience.

Best wishes,

dhm