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

Friday | March 27, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: March 26

What it all comes down to
Is that everything's gonna be fine, fine, fine
'Cause I've got one hand in my pocket
And the other one is giving a high five

—Alanis Morissette

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Prior to the open, the unemployment number came in a 3.3 million new applications were submitted. This is a huge number under ordinary terms, but we are not living in ordinary times.

So when the number came in, the minis sold off prior to the open; however, it took about 15 minutes for people to put the number in perspective. Once the shock set in, people realized that this is likely a temporary phenomenon, and minis started to climb.

OPEN

By the open, the Minis were up about +25 points. Once the bell rang, we opened up with the SPX higher by 25 points, and kept climbing the rest of the day. The Dow climbed 1,351.62 points (+6.38%). The SPX closed higher by 154.51 points (+6.24%) to close at 2630.07.

This was the third day in a row higher. It was not just higher, but dramatically higher. We are higher by over 20% off of Monday's lows as seen below. In bullish months, we will get the SPX to move up 100 points. We moved up 445 points in 3 days. That is NUTS.

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TODAY: March 27

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Lower?

After 3 days and 20% higher in the markets, we are due for a pause, though not a disaster lower. I am sticking with what I wrote Sunday night, that we saw the bottom (unless this virus mutates into an even deadlier super bug). That does not mean that after 3 days in a row of 6% moves higher, we can't sell of 2, 3 or 4%.

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

2020 ONE-YEAR PREDICTION:
Average year with lots of inter42mittent volatility
(-18.59% so far)

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A separate update is coming.

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DISCUSSION BOARD

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Really quickly...

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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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