7/19/17 was down -$0.53 and the model projects that the component on yesterday's kill will decline between -0.20 and -0.50. The QQQs settled discount to the component by -9.63 yesterday. The "Gap" got whacked quite a bit yesterday but there is plenty of "Gap" left.

With their lower bids, packers purchased 96.0% of the moving average daily purchases of index hogs. Producers of Index hogs are willing sellers. They may not be quite as current in their shipments as the rest of the producers. Packers seem to be the most current in their shipments. In fact, packers may have pulled hogs forward a bit. And I ask myself, "Why?"

That lone long QQQ pig is no longer lonely but has plenty of company with the long QQQs that remained when the short NNNs expired out of the boat load of short N/Q spreads that had piled up on my boat. Maybe I will be OK and maybe not. Yesterday I eased the load little but still have far too many for my risk tolerance.

Best wishes,

dhm