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

Thursday | July 30, 2020

Hello Eizell.




Well... the boredom ended yesterday with the SPX closing exactly 40 points higher at 3258.44.

The previous 3-4 days saw the markets undecided on which side of 3233 line it wanted to be on. Yesterday we opened at the 3233 line and stayed above it the whole day.

The news that took the market higher was Congress saying “pretty please” while serving “high tea” to Zuckerberg. I just pray that if I am ever dragged in front of Congress, they are as tough on me. We also had Jerome Powell talking, and he didn't trash the market. Then again, the market tends to fall the day AFTER he speaks. We will see what today brings.


TODAY: July 30


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

This may be the day. Powell spoke yesterday, so historically we should fall today. If surprisingly don't fall, SPX 3300 should be next. Today, we have AAPL's earnings after the close.

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 -36% for the year (this has been here since January 1).

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.

Average year with lots of intermittent volatility
(0.86% so far)

POT Logo

Class last night was a first time topic – Christmas Trees. After playing with the first one, it was time to discuss. This example created a lot of questions, so we needed to address it. We will start another one immediately so this is solidified on our minds.

YES – all of these contracts are just one trade example. Obviously, this is no “garden variety” long butterfly or call spread.



Up and Running for POT students (so far).

Really quickly...

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P.O.T. Schedule



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.



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