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

Monday | October 26, 2020

Hello Friend.





YESTERDAY: October 23

SPX 3465.39 12.97

Trading was slow and in a tight range, but we are still getting quick news related moves.

The market opened higher Friday in anticipation (again) of good news with a stimulus package. Nancy Pelosi spoke of how they are getting closer to a deal; however, it later came out from the White House that “Nancy Pelosi” was not budging on negotiations. Both of these news events prompted a swift reaction in the minis and SPX.

After the reaction, the market slowly drifted back to the starting point prior to the event. At the end of the day, we slowly climbed back to the day's modest highs while fighting AAPL's modest decline.


TODAY – Hostage Situation – Probably higher, unless more failed stimulus talks.

Eight days until the election. Hunter Biden's laptop is a treasure trove of potential felonies, which is being hidden by the media who is trying to carry Joe Biden to the finish line. This is prompting the Senate to subpoena the heads of Facebook and Twitter, and that can also bring down the entire tech sector. As the tech sector goes, so goes the market.

We also have concerns that the stimulus is not going well, and people are changing from optimistic to fatalistic about a stimulus being done.

We also had Biden talk this weekend saying assembling “The most extensive voter fraud organization in history”. Stalin would be proud. To those people who say he misspoke, his gaffes are even a bigger concern (to me). I think both sides try to cheat anyway they can.

This will not help the market bounce.

The link below is to illustrate that this is not FAKE NEWS for people thinking I am being politically aligned to one candidate over the other. I point this out as it will likely contribute to weighing on the market a little. A fair election is all that matters in America, and if that is potentially compromised the markets will not like it. With Joe it is probably a gaffe, but still.....

PEOPLE: I have predicted every winning president since Clinton could not win, but did. Trump could not win, and I said he would. I am trying to understand the markets – not get involved in politics. When not emotionally involved it makes for more objective decisions.

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
(+6.89% so far)

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Continued TURTLE WAX trading.



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