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

Monday | May 18, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: May 15

No one under the age of (say) 50 recalls an American President being tough with a foreign super-power, so on Friday when Trump blocked shipments of semiconductors to Huawei, the world panicked.

China has blocked access of scientists to study Wuhan, blocked supplies to the US, and the truth about everything coronavirus-related. The only thing they did NOT block was sending their infected citizens around the world to infect the whole planet. So blocking semiconductors to Huawei was actually amusing.

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China responded to this immediately by announcing it was going to block Qualcomm and Apple on an “unreliable entity list”. This is China's equivalent of DOUBLE SECRET probation. One must keep in mind that Huawei is indirectly a branch of the Chinese military, so this got China livid.

GOOD – anyone outside of China who knows someone who died from the coronavirus is also livid.

This got the media riled up and in a tizzy, though the same thing occurs when they read a National Geographic magazine from the 1970s. The media started to speculate about a shooting war, scaring the markets -35 SPX points lower on the open – mostly led by falling QCOMM and AAPL prices.

The 3 media started to also speculate about the start of another trade war. Let me tell you something.....we have been in a trade war with China for decades, just no one told our politicians. Their government and leaders view China as the rightful leaders of the entire globe on an economic and military level. In reality, they will fall apart if they are stopped from parasitically living off the rest of the world through theft.

MARKETS

After the initial panic open lower, the markets slowly recovered and headed higher all day. The Dow closed up 60.08 and the SPX closed up 11.20.

AAPL hit a low of 300.21 on the day, but closed at 307.71 (-1.83).

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TODAY: May 18

HIGHER.

Now that the China stuff is calming down (for now, but not over) and the fights about when the country reopens have been voiced a little bit, people will focus on the post-corona world. The market can now make another attempt at 2900 SPX.

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 inter42mittent volatility
(-11.36% so far)

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A separate update is coming.

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LAUGH OF THE DAY

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You provide the coffee and we will take care of the rest.

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Disclaimer

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