8/10/16 was down -$0.48 and the model projects that the component on yesterday's kill will drop between -0.45 and -0.75. The QQQs settled discount to the component by -1.46 yesterday and the VVVs were discounted by -9.61. The model projects that the cash settlement index for the QQQs will be 67.27 with a range of 66.92 to 67.42. It appears that "The Market" has the QQQs priced just about right and there is not much opportunity to go to cash settlement. Yesterday before I had my model making a projected cash settlement index, I made an "Out-of-control" purchase of a bunch of QQQs thinking the "Gap" was too wide and the futures would need to jump a bit. When I got the model making a projection, it appeared that the index will most likely move down to near the futures so I luckily was able to sell all of the QQQs for a mild profit.

Now I'm nearly flat the QQQs.

Packers made only a fair purchase yesterday at 88.7% of the moving average daily purchases.

The pre-opening is showing the VVVs to open quite strong. That is not the way I am reading the data although cutouts were up +0.70 yesterday. That's hardly enough to turn the bulls loose.

Still short a few VVVs.

Best wishes,

dhm