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For: Tuesday 04-06-2010

Last Gasp?

This could be the last gasp in the hog market. These are near record levels. Keep in mind the last time we were up here we had over seven dollar corn. With cheap feed prices we have both the pork and beef complex playing off each other. The market is in my opinion close to a top but we will wait for confirmation before placing a trade.

Aggressive traders may opt to use futures. As always please consult your personal broker at Great Pacific Trading Company to see if this trade is suitable for your account.

Trade Recommendation: On a close back below 8200 versus the June futures, this week only. Buy the 78-72 put spread and sell the 88 call for even money. Risk 200 points on the trade initially. (>$800 not including commissions and fees), Look to take profits if the market trades to 7550 in the intermediate term.