Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Tuesday | October 6, 2020

Hello Eizell.





YESTERDAY: October 5

SPX 3408.63 60.19

The day was so predictable. I stated it in the prediction area of “TODAY”.

We sold off Friday because President Trump went to the hospital with a diagnosis of the corona virus. The market is obviously going to sell off, especially going into the weekend, on concerns that it might be serious.

Over the weekend, the President stated he was doing well. His doctors had a press conference, and he was out driving and waiving at supporters. I know people don't want to hear it, but.....the markets think Trump is going to win. Going home on the 3rd day seems it won't interrupt his campaign much. Biden's taxes and policies are too unpredictable and draconian.


Given that things were not grave with the President, the market was certain to rebound by what it lost the previous trading day. Given how close we were to 3400, it was inevitable we would test the resistance line of SPX 3400. This is where we sat all day until it was announced that the President was going home to the White House at 6:30pm. He then tweeted that he felt better than ever in the last 20 years, and that we should not be afraid of this virus (see insert). This sent a message to the markets that countered what the media has been saying all week. They (media) suck.

All weekend the media has been spiking the football on news that Trump was positive with the virus. Some were even vicious enough to say they wished he died, that he brought it upon himself, etc. Trumps tweet erased all of this for the stock market, and we blasted through the 3400 ceiling. The math is simple. The death rate is about 2 times that of the flu. It is not the plague, and the market sort of embraced this.

The SPX closed higher by 1.80%, and the NDX closed higher by 2.25%. AAPL was down -3.70 on Friday and closed higher by 3.48 yesterday. Despite this, the VIX climbed slight (higher by 0.33) to settle at 27.96.


TODAY: October 6

TODAY – Higher – Much Higher

We should be running hard, though we could fall 8 points to test 3400 again before the run. Normally, I would say “TO THE MOON ALICE”, but the media controls things now that we are so close to the election.


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.

Average year with lots of intermittent volatility
(+5.50% so far)

POT Logo

Separate update will be sent.



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.


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.



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: “,” “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.

COPYRIGHT (c) Material 2019 | Stratagem Trading |


If you wish to no longer receive our newsletter, you can Unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States