12/4/15 was a surprise - DOWN 0.45 TO 88.29. The weakness of the ZZZs now has them discounted to the component by 0.82. I had been thinking that there was a good chance that the Index might move up to close the "Gap" but it is beginning to look like they may both move down.

I have not been able to develop a feeling strong enough to cause me to take an outright position in the ZZZs for sometime. Historically it is not often that the Z/G spread expires in positive territory so I have done quite a bit of selling the spread and it has treated me well. ITZ says to be careful because the ZZZs may surge ahead of the GGGs as the ZZZs go to cash settlement.

Best wishes,

dhm