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

Friday | May 29, 2020

Hello Eizell.




The day started out by extending the rally we have been seeing through SPX 3,000. Despite news drop after news drip of very negative news indicating the relationship with China is getting tense, the markets ignored it and slowly climbed.

At the highs of the day, the SPX was at 3068.67, just 1% away from 3,100. This was not going to stand as the straw that broke the camel's back came in the last hour of trading.

News that China was going to approve a law allowing the Chinese people to sue the US for the United States creating the coronavirus epidemic was just too much. We slowly drifted lower back to the unchanged levels. Once there, the market fell quickly to the lows of the day, -12.73 in the SPX.

Just get a load of these headlines:

  • “Senator says China Tariffs will NOW apply to Hong Kong as Beijing approves “National Security” law.
  • “WH expels Chinese Grad Students with ties to People's Liberation Army”
  • “China rattled after Taiwan pledges help for fleeing Hong Kongers”
  • “China claims it “expelled” a “trespassing” US warship in the latest dangerous S. China Sea incident”.
  • “China proposes a law allowing citizens to sue US for starting coronavirus pandemic”.

TODAY: May 28

TODAY – LOWER – testing 3,000?
MEDIUM TERM – Consolidation around 3,000
LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

I have been saying for years and years “China is our real threat – not Russia”. I have been saying for months that the next cold war- hot war will be with China. We are now inching closer to that.

What that scumbag murderous officer Derek Chauvin did to George Floyd was disgusting. He apparently (unconfirmed) has three previous shootings, which has to be a sign of serious problems. My dad was a cop for 34 years in a dangerous town and didn't shoot a single person. Chauvin is a sick individual that should be in jail for life; however, the focus now is on the other scum bags – the looters. Don't tell me 15 color TV sets stolen from Target and burning down a town is cathartic, but that is in the news and things are escalating.

Between the escalation of events in Minnesota (and around the country), and increasing tensions with China, it will be hard for the markets to move higher.

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.


Average year with lots of intermittent volatility
(-6.22% so far)

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