Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Wednesday | August 12, 2020

Hello Eizell.



YESTERDAY: August 11

The SPX opened higher and reached 3381.01. Keep in mind that the all-time high was 3393.52, and the whole world knows it. The market sat between SPX 3370 and 3380 despite NASDAQ stocks selling off, and gold getting hammered lower. For the second day in a row, analysts came out and trashed AAPL. The stock started to sink from its high of 449.93 (just under 450) to leak air going into the close.

Once the stock fell through 442, the stock market capitulated. This was at the unchanged line in the SPX. From there, we sold off going into the close with the MINIS falling -30 points on the close. Once cash closed, minis jumped +10 points higher.

Yesterday, the PPI number came in twice as good as expected, but added nothing to the pre-open advance prior the the bell's ringing. The SPX settled down 26.78 (-0.80%), the NASDAQ settled down 209 (-1.89%), and the Dow closed down 104 points (-0.38%). The disparity in closing percentages indicates traders were shifting out of high tech names and into Dow stocks.


TODAY: August 12

TODAY – Touching record high (3393.52) by end of week. Still believe this despite yesterday's drop of 27 points.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election (This one has been here for WEEKS. Nothing changed).

Election (I hate politics, and don't like talking about it – but it does move the markets, so...)

BIDEN PICKS HARRIS – Don't think it is an immediate needle mover. Wall Street expects Biden to lose, and doesn't believe fake polls. Wall Street likes low taxes, low interest rates and low capital gains – the opposite of Biden and Harris.

Right at the close (of trading yesterday), Biden picked Kamala Harris to be his running mate. The New York Times was quick to say that the 4th most liberal, green deal backing, gun control fanatic (who owns a gun herself), free healthcare for illegal immigrants, anti-plastic straws, Medicare for all senator was labeled “Moderate”.

LOL A “moderate?” Hannibal Lector, by comparison, was a gourmet. She arrested 1900 people for smoking pot while doing bongs herself. Aren't people rioting because there are two sets of rules – one for the cops and one for citizens, one for politicians and one for citizens, one for.....

Harris, who mostly grew up in Canada, had stated in April of last year that she believed Biden sexually assaulted women. She has serious issues with Biden being a potential rapist (not my words), but her convictions are are not as strong as her desire to be VP to that candidate. WOW. With so many qualified and honest black women, why would Biden pick her? I guess it doesn't matter....the media will say it was the best choice.

If Biden had picked Michele Obama or Oprah, it is my opinion Biden would win based on them alone. The media would have an easy time carrying Biden over the finish line. He didn't. I think the market is going to realize this, comfortable betting that Trumps pro-business and low tax policy will be around another 4 years.

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
(3.19% so far)

POT Logo

Class tonight!

Topic: Index Pairs



Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule



Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.

Very afraid of the Coronavirus.



For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

Stratagem does NOT offer auto-trades. Case studies being provided are historical examples illustrating how a particular commodity, equity, index and/or option strategy could have been implemented. Stratagem Trading is not providing students with real time trading opportunities, nor giving advice. We strongly recommend that you consult with a licensed financial professional for all your financial matters.

COPYRIGHT (c) Material 2019 | Stratagem Trading |


If you wish to no longer receive our newsletter, you can Unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States