7/18/19 was up 1.04. Packers are beginning to chase hogs big time. The model projects the component on yesterday's kill will jump between +0.45 and +0.75. The QQQs settled premium to the component by +10.73. The model projects it will take an average daily gain of 0.55 to close that "Gap". If the gains we are seeing lately become the norm, the Index will not only move up enough to close the "Gap" but will also push the QQQs even higher. Maybe I better cover the two short QQQs that I piled on my boat.

Packers purchased 76.4% of the daily moving average daily purchases of total hogs and 97.7% on the Index hogs. The kill so far this week is +1.34% over the same week last year. The last H&P report suggests it should be more than 3% higher. Are seeing the supply of market ready hogs decline more than anticipated? Maybe.

Best wishes,

Doc