I trade them".

But I'm doing all right. Shorting the VVVs has served me well. I have made quite a few profitable short V/Z spreads. i still have quite a few piled on my boat. I need to get them off to be able to square up the ledger and get a final tally on the V/Z spreads.

There was this 82 year old man who went to his physician for a check up. A few days later the Doc saw him walking down the street with a gorgeous young "chick" on his arm.

The next days later the physician happened to meet him on the street and he said to the 82-year old, "I see you are doing all right."

And the patient said, " Just doing what you said, Doc, 'Get a hot mamma and be cheerful."

The Doc said, "I didn't say that. I said, You have a heart murmur, be careful."

I tell you this because I want you to understand that I did not tell you to get long - - yet. There may be a little down-draft left for the piggies.

I suppose you noted that the kill this week is coming in quite strong being up 3.37% over the same time last year and the kill was strong last week.

I suppose you noted in my earlier post that the 6-day moving average carcass weight is firm and packer hogs are now lighter than non-packer hogs making me think that packers have been pulling their hogs forward because they know more, cheaper hogs are on the way.

I suspect that you saw where cut-outs were down 1.60 today in spite of the fact that bellies were firm.

I don't often post the afternoon preliminary Purchase Index number from the afternoon reports but I will for you today because I want you to understand that I am not telling you to get long.

From the afternoon reports the model projects that the Purchase Index will drop -$1.72. If it comes in that low, it will be the biggest one-day drop we have seen for a long, long time. On 7/1/16 it dropped -$1.28 and before that I couldn't find a very big drop going back quite a ways. The model is projecting that the component on today's kill will drop between -0.85 and -1.15. Drops like that close a lot of "Gap".

I'm not telling you to get short, but I want you understand that I'm sure not saying to get long. Just keep in mind that you don't ALWAYS have to be in the market. It's all right to take a by.

I seldom get into a tirade like this so now just watch the hogs head higher tomorrow and stop me out of the Short VVVs I have left.

Your cyber-friend,

Doc