7/26/19 was up 1.59 to 81.20. The QQQs settled premium to the component by +3.23. The model calculates the component will need to gain an average of +0.26 per day to close the "Gap". Over the past 9-days the component has gained an average of 1.19 per day. If the component continues to gain at that rate, the QQQs would go to cash settlement at 96.02. You and I both know that WILL NOT HAPPEN.

But -

The component could gain enough to close the "Gap". Packers' margins are not very good at $5.95 per hog. This means packers are going to want to get their cost of pork down. Cutouts dipped by -0.34 today and that won't help us bulls one bit.

The 6-day moving average carcass weight eased to 208.95#. That is +1.65# yr/yr. Index hogs were a bit heavier at 209.13#. Packer hogs were lighter than the non-packer hogs by -0.34#.

Best wishes,

Doc