MURICO.com Forum

The final Purchase Index for - - -

7/19/18 was down -0.69 and the model projects that the component on yesterday's kill will drift lower by something in the range of -0.50 to -0.80. The QQQs are now trading discount to the component by -12.07. That is one whopper of a "Gap" but sometimes when we move into the liquidation phase of the hog cycle, finding the trough becomes nerve wracking and I just don't know if this will be one of those times or not.

Packers purchased 97.3% of the moving daily average of daily purchases of total hogs and 104.2% of the Index hogs.

I am short a QQQ and have constructed a rather complex option trade in the ZZZs. I usually don't trade a lot of hog options but felt inclined to do something in the ZZZs and options seemed to be a good choice. This morning I piled another long Q/V spread on my boat. All the ones I put on yesterday met my profit objective and so my boat was riding high in the water and need more cargo to pay the bills.

Best wishes,

dhm