7/12/16 WAS DOWN -$0.60 and the model projects that the component on yesterday's kill will slide between -0.40 and -0.70. Packers are on a bid-cutting binge right now. That's something they know how to do.

Looking at the jump cutouts made yesterday, it's not because demand is in the pits nor are the packers' margins hurting.

With their lower bids yesterday, packers were only able to purchase 84.9% of the moving average daily purchases.

The NNNs are now discounted to the component by -1.32. Considering the aggressiveness with which packers are cutting their bids, I think they may close that "Gap" then some. I took profits on all my long NNNs yesterday and will sell now at or above 80.50.

Best wishes,

dhm