wmeubank@ocp.kcmo.com
GLOBAL ASSET MANAGEMENT
575 W. Madison, Ste. 2607, Chicago, Illinois
(November 13, 1997) HOGS: The pork complex showed signs during the past week that it might break out of the sideways range it has been fixed in for the past months. The support was sparked by a firming and cash market and higher product markets. The cash market ended the week with hog tops quoted at $46.00 to $48.00, which was steady to $2.00 higher. The product sector also showed signs of life as most sectors were higher with talk of future bookings sparking a little panic buying by some short bought retailers. Overall, market internals are now turning positive due most in part to the fact that the hog runs are now starting to trend below what the market expected. The other thing that points to a possible price rise is the fact that futures remain well below the CME lean hog index. Technically, December lean hogs are in a downtrend; they would turn back up on a close above $64.30
FUTURES STRATEGY–Long LHZ at $61.77; maintain a protective sell stop close only at $60.00.
OPTIONS STRATEGY–Short LHZ $60.00 puts at $0.90; maintain a protective buy stop at $2.15.
Tony Montini
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