7/27/17 was down 0.77 to 88/.36. The QQQs are now trading discount to the component by -7.14. It just might be that hedgers are getting nervous in front of the weekend and are selling QQQs and VVVs. I know I am getting a little a little nervous aboutg my long QQQs.

The 6-day moving average carcass weight was steady at 206.82#. That is -1.04# yr/yr. Generally at this time of the year carcass weights will show a little weakness. The fact that carcass weights are holding steady may mean that producers have ample numbers of market ready hogs. Index hogs were also steady at 206.62#. PACKER HOGS are lighter by -1.86#. Packers seem to be moving their hogs out.

The model is showing that the component has dropped and average of -0.54 over the past seven days. If that rate continue, the cash settlement Index for the QQQs will be 82.04. On athe other hand, if falling cutouts is making the packers cranky and the drop of -0.77 seen yesterday is the new "Norm", the cash settlement could crash to 79.47.

Calendar spreads are active for me today with some coming and some going. I'm trying to build the number of working trades on my boat there have been more coming than going.

Best wiushes,

dhm