8/2/18 was down -1.33 and the model projects the component on yesterday's kill will plummet between -1.05 and -1.35. The flow of red ink seems to be intensifying!!

With their lower bids, producers were able to purchase 101.1% of the daily moving average of index hog purchases Total purchases were a bit less at 90.5%.

The QQQs settled discount to the component yesterday by -9.23. The model shows that it will take and average daily drop of -1.09 to close the "Gap". Over the last eight days the component has dropped an average of -1.04. If the QQQs drop another point today, I think I will probe the long side thinking cash settlement may not be that low. I'm still accumulating summer futures. I want to be a bit cautious because things can get mighty ugly when searching for the "Trough" in the hog cycle this time of the year.

Best wishes,

dhm