MURICO.com Forum

The CME Lean Hog Index component on the kill for -

4/30/18 was only up +0.07 to 62.48. The "Gap" has now opened to +5.09 with the KKKs being premium to the component. The model shows that the component will need to move up 0.54 per day to close that "Gap". During the last ten-days the component has been up 0.79 per day so it would appear that gaining 0.54/day would be a cake-walk. I'm looking at the momentum and it appears to have slowed quite a bit so I am short the KKKs. Sometimes I am right and sometimes I'm wrong. I was able to unload a couple of long K/M spreads this morning. They have not been very nice to me this year.

Best wishes,

dhm