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

Thursday | March 5, 2020

Hello Friend.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: March 4

OPEN

Coronavirus? Who cares? When it appears that the democrats may have avoided the “socialist bullet” of Bernie Sander, the market jumped higher in relief. The stock market apparently views a Bernie win as a bigger threat than any virus. The move higher yesterday was a greater absolute value move than the moves lower during maximum panic last week.

The SPX jumped higher on the open by 31.01 points.

AFTER OPEN

Thirty minutes after the open, the Bank of Canada duplicated yesterday's US Federal Reserve rate cut of 50 BPS. The BOC lowered rates by 50 BPS and stated that they would do more as needed.

From that point on, the market climbed, and then rested. Once strong again, the market would bounce to the next resistance area, and then it rested. This continued at ever large resistance point until panic buying came in on the close.

CLOSE

At the close a massive “short squeeze” and “panic buying” kicked in sending the SPX above 3100 in the SPX, and it settled at 3130 (1% higher than when stops kicked in). Think about that! The stops alone took the market up an addition 1% on just the close.

SURPRISES

SPX closed up 4.22%

Dow closed up 4.53%

AAPL closed up 13.42 (302.74), or 4.64%.

AMD got back to $50 by closing up 3.36% (7.2%)

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TODAY: March 5

LOWER:

The euphoria of Biden's surprise victory and the subsequent sigh of relief is over. Yesterday was a celebration and short squeeze. Today it back to reality.

The pools had Bernie ahead of Biden by as much as 20 points in Texas, but Biden won in a surprise upset. Are people not done with these stupid polls after 2016? The statistical biases and data collection flaws renders any poll results almost useless.

BACK TO REALITY

  1. Virus Unknowns
    The reality is that there is still no accurate and consistent information out about the virus. I still maintain my doubt that this is a naturally occurring virus, rather it got out of a lab and no one is admitting it. There is zero coincidence that this started in Wuhan, the center of China's biological agent research center.

  2. Virus Economics
    The long term economic negatives on the economy from the virus is likely just a small speed bump.

    The short term will be painful. Travel plans are being canceled. with Airlines, petroleum companies, hotels, cruise ships, restaurants, concert venues, etc. are going to be scary for a little while. We will hear about it every day in the media.

    FEAR INDEX: I have my own fear index. I go to the store at midnight and look at water, canned goods and Purell hand sanitizer levels. Water is low, soup is low and day 5 of no Purell. People are still afraid.

  3. Biden has not won yet. This was just a surprise bump higher. The ruling class and media really wants him to win because he is not all there intellectually. He can be controlled. That makes a tough win in a Presidential debate against George Carlin Jr. - President Trump.

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

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(-3.12% so far)

POT Logo



Class was rescheduled for tonight..

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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.


Joe Biden has a habit of trying to pick a fight. He has threatened an 82 year old man, and wants to take Trump out behind the school.

Tuesday Biden hid behind his wife (Jill) who fought off protesters rushing the stage.

Maybe Jill Biden should run instead?

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Disclaimer

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