image
Stratagem
Facebook Twitter YouTube

Having trouble viewing this email? Click here

Prepared by StratagemTRADE.com and Scott
Writing under the nom de plume of J.L. LORD

Thursday | June 4, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

image
image
image
image

YESTERDAY: June 3

I was fully expecting the day to test 3100, but I did not expect what came next.

The market gapped higher hitting SPX 3100 right at the open, and sat for a while. This is where we would typically see a drop below the magic number (3100), indicating it was all forced buying on the open. Instead, we kept climbing the rest of the day.

This was not oil or bonds, or even gold helping the market higher. The FAANG stocks have not led anything higher for weeks. This was all travel related stocks that had been beaten down hard in the coronavirus selling. Boeing (BA), for example, climbed 19.85 (12.95%) on the day. American Airlines climbed 5.6%.

After the market planted its flag on terra firma SPX 3,100, it continued a very shallow but consistent assent before hitting a high of 3,130.84.

I have been saying all year, including when down 36%, that the market was going to close the year higher; however, even I was surprised by the strength of the market given the riots, increased tensions with China, etc.

CHINA

Make no mistake... It is my opinion that we entered the “point of no return” in a new cold war with China. It is what it is, and will eventually decrease our GDP by 3%, while taking their GDP down a LOT MORE. They are going back to the financial stone age if they continue flexing their muscles with this President. Their only hope is if Biden wins, or they learn a little humility.

Recall that back in the 1990's, Japan got too big for its britches and became the richest nation on earth. We could not stand for that, so we reshuffled the deck. Now the deck is going to be thrown off the roof.

Today alone:

  • Trump banned flights from China to the US – not because of the coronavirus.
  • Trump slapped “foreign mission” restrictions on Chinese media outlets.
  • The UK is considering offering citizenship to 3 million Hong Kong residents.

When the world wakes up to this, and things get more heated, we will fall hard. Right now, however, the market is SUPER STRONG. We are up 30% in 50 days. There is almost $5 trillion in money market funds waiting to be deployed. The Fed is printing money, and interest rates are at near zero. I actually should be surprised we are not higher.

We are only down 3.3% for the year in the SPX. LOL

image

TODAY: June 4

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

With 4 days in a row higher, we have seen the SPX move from under 3000 to over 3100. Nothing goes higher (or lower) every day. I suspect we open lower, but any strong selling will probably be a buying opportunity.

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -35% for the year.

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(-3.34% so far)

POT Logo



Separate update to come.

image

DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule

image

LAUGH OF THE DAY

Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

image

Disclaimer

For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “StratagemTrade.com,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

Stratagem does NOT offer auto-trades. Case studies being provided are historical examples illustrating how a particular commodity, equity, index and/or option strategy could have been implemented. Stratagem Trading is not providing students with real time trading opportunities, nor giving advice. We strongly recommend that you consult with a licensed financial professional for all your financial matters.

COPYRIGHT (c) Material 2019 | Stratagem Trading | StratagemTRADE.com

here.

If you wish to no longer receive our newsletter, you can unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States