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

Friday | May 22, 2020

Hello Eizell.




I stated yesterday that the selling in the night session was stupid, and we should recover. We did open -30 SPX lower and recover; however, the stupid came back in the early trading hours.

Analysts were non-stop talking down the market today. As the constant trickle of negative news came out like an hourly dose of hydroxychloroquine, the market would get heavy. Between rounds of cacophonous gibberish, the market would attempt to run higher again, only to be pulled down once again by the lobsters in the tank.

The market attempted to run higher many times, but eventually acquiesced and fell on the close for a -102 Dow point drop and and -23.10 SPX drop. Once again, we settled on the south side of the huge 2950 technical number.


TODAY: May 22

TODAY – LOWER (unless fed gives away another $3 trillion)

MEDIUM TERM – HIGHER, testing 3,000 (200-day MA = 2997)

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war.

The media has been beating on the rhetoric of lost jobs and no vaccine. Forget about a vaccine. How often does the CDC get the flu vaccine right (answer: 25% of the time). How long have they been promising an AIDs vaccine?

As I have stated back in January....this is a really bad, bad flu, but it is NOT Ebola. I also said to store up on masks, hand sanitizer gels and beef. A little optimism people, and this market makes new highs. The caveat here is that will happen if the FREE MARKETS are allowed to perform.


Trust the people in government, and it will take forever. They are too busy falling for the 20-year old NIGERIAN PRINCE scam to this day. Just look at Washington State.

Keep in mind we have lurking in the near future a VERY NASTY trade war with China. It will likely be a cold war. They are still hoarding PPEs and meds that belong to the US as they ready for the second wave of the flu in the Fall. This will be 10 times nastier than the fight over pork and grains.

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.


Average year with lots of inter42mittent volatility
(-8.73% so far)

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