12/29/16 was down -0.57 to 57.48. The GGGs are now trading premium to the component by +7.22. That is quite a "Gap". It just might be that producers have fallen behind on their shipments because of the holidays. Looking at the carcass weights, the index hogs have now moved up to 211.26# compared to all hogs at 211.80#. Perhaps producers of Index hogs have especially fallen behind in their shipments. This may enable packers to cut their bids a little after the holiday. Packers are also getting behind in their shipments. Their hogs are now +5.66# heavier than the non-packer hogs. Packers get to decide which hogs to kill and they may strategically be deciding to retain their hogs. The 6-day moving average carcass weight of packer hogs moved up nearly 2/3# today.

I am beginning to suspect that packer hogs getting heavier is a bullish signal!

Ka!! Ching!! Ka!! Ching!! Unloaded two long M/N calendar spreads at my profit objective this morning. Have plenty more to get rid of but that does make room for me to re-load those two.

Scalping has been good this morning. My trend-line reversal system targets on trying to catch the suckers that ITZ throws back.

Best wishes,

dhm