5/10/16 is being delayed due to "Packer submission problems." Based on this morning report, it appears that the component will be up mildly.

This morning "The Market" has decided to claw-back a lot of the K/M trading gains I have been patiently putting away. Based on paast years, I was mindful that there could be a mighty wild move downward in store for the K/M spread. So once again Gumperson's Law plays out. If any of you are not familiar with Gumperson's Law it states, "The probability of anything happening is in inverse ratio to its desirability."

Looking at the premium the MMMs were carrying to the index, I had been thinking there might be a limit move in store. I was thinking down, but no, we get it up!!

So once again Long Bear's observation that in the hog market one can always expect the unexpected!

One of two scenarios may be in play here. The Big Dogs may be running stops and taking out the weaker shorts or China may be coming into the market in a significant way. If all of a sudden 1.357 billion people want an extra pork chop to grill, that takes a lot of hogs to supply that cook-out. That's nearly four-and-a-half times the population of the US!

Perhaps on Friday when the KKKs expire I will join Dewey as the owner of a bunch of short MMMs. At one point I thought I wouldn't mind that but now I am having second thoughts about it. A lot can happen in the hog market in two-days!

Best wishes,

dhm