8/14/17 was down -0.46 to 84.11. That puts the cash settlement index for the QQQs at 84.38, at least that is what my model is calculating. I have noticed as of late sometimes there is another category of "Index Hogs" showing up in the CME calculation that sometimes puts my model off a couple of pennies but mostly the model does well. The combination of a lower index and strength in the VVVs has closed the "Gap" to -13.75 with the VVVs at a discount to the component.

Historically that appears to be too wide of a discount.

Fundamentally packers' margins seem to be good enough to enable th em to keep the Index a bit above where the VVVs are trading.

So I am going counter to Douglas E. Zalesky's Trading Rule #14 and am speculating that the component will suck the VVVs higher. Well, not totally violating Rule #14 because I have scalped in and out of a couple of VVVs today but I am clinging to a couple of the longs. That may be in harmony with his Rule #21. The data available in the hog market may be good enough to enable a trader to violate Rule # 14. I have never found that to be the case in any other market. His rules are really good and when one violates them his chances of success are greatly diminished.

Best wishes,

dhm