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

Monday | May 4, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: May 1

The day started out with downward pressure after some earnings reports and economic numbers. Despite AMZN being higher by over $100 points the previous day, the stock opening lower by 160 points scared the markets. AAPL had good earnings, but after its run higher, $5 points reversed (to close down -4.73) the markets felt the weight of FAAN stocks falling.

Even TSLA fell 10.3% after Elon Musk finally snapped. During the day Mr. Musk started off tweeting how his stock price was too high, that his girlfriend (Grimes) was mad at him, some lines from the Star Spangled Banner, on lines stolen from poets. It was very strange.

The day saw the Dow close down 622.03 points (23.723.69) and the SPX close down 81.72 (2830.71). The VIX climbed 3.04 points to settle at 37.19.

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TODAY: May 4

TEST SPX 2800 lower.

We will likely open lower today after Warren Buffet said he is selling all his airline stocks. It is hard not to have respect for Mr. Buffett, but this is the second time he said he will never trade airline stocks.

It doesn't help that news is coming out that China hid the virus to buy time to hoard supplies, all adding to the gradual decline in the idea of “globalization”. Like socialism, globalization doesn't work as when shit-hits-the-fan, even country will look out for their own interests. Time to reshuffle the supply chain deck again. When this is over, China will move from world's 2nd largest economy to about 4th (where they belong).

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
(-12.3% so far)

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The class was the 8-BALL SPREAD. This is a new strategy with eight pieces designed to allow the trade endurance in staying long a put spread, even if the market bounces.

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DISCUSSION BOARD

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 to come.

LAUGH OF THE DAY

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.

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Disclaimer

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: “StratagemTrade.com,” “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.

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