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

Wednesday | March 11, 2020

Hello Friend.





It was another day like we have seen for the last two weeks. Volatile!


The day started in the pre-markets with the E-minis limit up before backing off before the open. After the open, the market got nervous as more coronavirus news came out and the SPX dipped into the negative with a net change at the lows of 2734, down $12.56.

At this time, it was announced that President Trump was going to speak at 5:30pm eastern about a stimulus plan to fight the economic drains on companies from the coronavirus. This news created enough optimism for the SPX to jump to 2800 (66 points higher). The market sat under 2800 for all but the last 90 minutes as it waited for further clues if it should move to 2700 or 2900.

At about 1pm Chicago time, rumors started to leak that President Trump was going to announce that he was helping the cruise industry and airlines. Airlines such as AAL that were as low as $14.61 jumped to $17. Boeing was -$6 on the day and jumped to unchanged.

Later, more rumors came out that Trump was going to also suspend the payroll tax on corporations and individuals for the rest of the year. This was a little confusing as earlier in the day, Nancy Pelosi stated that she and fellow congressman may not be able to meet with Trump this week. Yet this was fuel thrown into the afterburners nonetheless.

In the last 90 minutes, the SPX jumped from 2800 to close at 2882, which is about 700 additional Dow points. Bonds and the TLT fell like a rock with the TLT closing down almost 9 points. On the close, traders rushed for long deltas as many analysts predicted that we had seen the lows for the year.


SPX closed up 4.94%

Dow closed up 4.89%

AAPL closed higher by 19.17 at 285.34 (7.2%)

TLT closed at 162.51 (down 8.78)

VIX closed at 47.30 (down 7.16)


TODAY: March 11

This is going to be chaos again, and does not appear to want to end soon. More coronavirus news came out that the media is painting as a negative. President Trump was quick to note that this year so far, the flu has killed 8,000 Americans and the virus has only killed 27.

It appears, however, that the economic news the markets were hoping for was not enough to keep the markets at their highs in the after hours. Even a HUGE Biden win over Bernie (the markets hate, hate, hate Bernie) was not enough to keep the Minis from falling -50 points at the time of this writing.

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.

You’re braver than you believe, stronger than you seem and smarter than you think”.
—Christopher Robin, Winnie the Pooh

Average year with lots of intermittent volatility
(-10.79% so far)

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