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

Wednesday | October 21, 2020

Hello Eizell.





YESTERDAY: October 20

SPX 3443.12 +16.20

Multiple personality. The market was showing off its propensity to be addicted to greed and paranoid of fear. The real drivers of the stock market are not P/E ratios and value, rather it is fear and greed. Yesterday, we saw both Jekyll and Hyde several times.

The market opened higher on hopes a stimulus would be done. Nancy Pelosi scheduled a press conference at high noon. Leading up to the press conference, she stated that she is drafting the stimulus bill, and that they would negotiate after. You have to love the “you have to sign the contract to see what is in the contract” approach – her trademark.

At noon NY time, that market started to climb as it was announced both sides were talking but apart on some issue. I have no idea why that was good news, but the SPX ran higher by 47 points and cash hit its high of 3476.93.

After hovering there for 30 minutes, hope was dashed as both sides were not in agreement, amazingly, like they were at noon when the market ran higher. This “no agreement” was announced when the medication was wearing off, and the market didn't care for it. This time, the market erased all but 8 points of the SPX run.

For the rest of the day, the market hovered with the Dow higher by about 100 and the SPX higher by about 12, but looking shaky and nervous. SPX settled at 3443.12 (+16.20).

AFTER the close, SNAP reported earnings and is going to FLY higher on the open.


TODAY – Hostage Situation – Hard to negotiate the markets in these situations.

The hostage situation continues with the stimulus package, with today allegedly being the last day. Is this really the last day? I doubt it. It is a delay game so the checks go out after the election.

DEBATES (May Move Markets)

I CAN'T WAIT until the election is over, and thank God it is only once every 4 years. I hate people thinking I am taking sides, though I admit Nancy Pelosi is not my favorite.

Tomorrow is the last debate, but there is the HUGE controversy over Hunter Biden's laptop. The Biden campaign is not denying the laptop is Hunter's and forgot to pick it up (or where he dropped it off). I am not going to say what Giuliani and others are saying is on as it is too disgusting even for a former Chicago university fraternity guy.

But since the laptop turned up, Biden has been hiding (again), canceling all appearances. The media has been very, very efficient at covering up the details in favor of Biden.

Biden may try to cancel the final debate for tomorrow with a flimsy excuse, or worse, get blasted by Trump who has substantial evidence. This may move the polls dramatically, which could move the market.


October 22 – Presidential debate #3

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
(+6.57% so far)

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