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

Monday | August 31, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: August 28

SPX 3500.

Thursday we hit 3500 and fell. I stated that the next day, we will close above it, and we closed at 3508.01 – slightly higher than I would have guessed. This market is on fire.

Friday, the markets open unchanged and stayed under the 3500 line until the last 90 minutes of the day. Other than the close, the day was very quiet while TSLA and AAPL were jittery due to their impending split today.

AAPL goes through a 4:1 split and TSLA goes through a 5:1 split. The stocks have been running up HUGE since the splits were announced. We will see what happens in a few days when the morons thinking they are going to get “free money” are schooled.

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TODAY: August 31

TODAY – The market is still very strong, however, we need a healthy pullback which might not come for a while. Everyone is still cautious and made they missed the bounce.

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).

There are 63 days until the election, and so far we have not had any explosive volatility swings because of politic games like we did in 2016. Then again, we didn't see crazy market movements in 2016 until the 1st week in September. Oh yeah....this is the first week of September.

NEXT BIG DAYS:

Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3

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.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(8.58% so far)

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Last week we got on a couple hedges that were nearly free. Every day the market run higher, though, so we will keep adding more hedges when possible. Recall that the goal of the next 30-45 days is to get very aggressive on adding hedges. The higher the market moves, the more hedges we will want and need.

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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

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