MURICO.com Forum

The final Purchase Index for - - -

11/7/17 was down -$0.47 and the model projects that the component on yesterday's kill will be down between -0.30 and -0.60. The ZZZs settled discount to the component by -4.52. Perhaps that is enough "Gap" to be mildly supportive of the ZZZs. The up trend seems to have come to an end and traders have now driven the ZZZs down to the point that it takes a fair-sized down trend to close the "Gap". With the cutouts holding up quite well and carcass weights holding firm, I am left guessing whether I should be long or short the ZZZs.

I have chosen the short path but it may not be the correct one.

Best wishes,

dhm