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

Monday | April 20, 2020

Hello Eizell.




The day started with the market jumping higher by +60 SPX points right on the open and then giving back 30 of those points all within the first hour. The rest of the day saw the markets sit in a range between SPX 2830 and 2860 (net +30 to +60).

Recall this was the day that President Trump stated was the official day some states were slowly allowed to reopen for bushiness. Despite the country slowly reopening, crude oil prices fell with worries about the economy and a lack of a strong deal between the Russians, Saudis and America to limit production. This kept a lid on things as the market is keeping a close eye on oil for direction on the economy.


The close of the day got a little carried away with the SPX running higher by an addition 15 points in the last 30 minutes of trading. Is this reluctant buying by people worried they will miss the run higher, or short covering capitulation?


TODAY: April 20

The highs in the markets were made on Feb 19th at 3393.52 and the lows were made on March 23 at 2196.86. This is a 1201.60 point fall, and the mid-point is 2792.65.

Friday, we closed at 2874.56 or about +82 points above the middle of the peak and valley. This is usually a good resting place to determine where we go from here. I am saying HIGHER, though the climbs from here will be more jagged with some pullbacks along the way.

One anchor for today will be oil prices which are still trading heavy around the world. I am still standing by my prediction (made Dec 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 inter42mittent volatility
(-11.03% so far)

POT Logo

Now that the markets is at the midpoint and we are typically seeing less than 3% moves per day, I am inclined to go back to normal procedures in the POT class starting today.



Up and Running for POT students (so far).

Really quickly...

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