7/12/17 was down -$0.04 andd the model projects that the change in the component on yesterday's kill will be between +0.15 and -0.15. With their steady bid prices for Index hogs, packers were able to purchase 97.2% of the moving average daily purchases. Packers did better on total hog purchases getting 122.1% of the moving average daily purchases. IF demand holds, the dynamics are right for a bounce in the QQQs. They have been beaten down until they are now at a discount of -10.16 to the component.

That's huge.

Last year on this date the QQQs were discounted to the index by a mere -1.80.

But -

It's the supply/demand factors here and now that drive prices and the demand component as measured by the cutouts yesterday was strong still.

Earlier today I was busy selling Q/N spreads now I have been making some trips to the bank.

I'm still long some NNNs and that lone QQQ pig.

Best wishes,

dhm