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

Monday | October 19, 2020

Hello Eizell.





YESTERDAY: October 16

SPX 3483.81 +0.47

The market opened SPX +32 points higher, and then it fizzled out. The first two hours saw the market climb higher, and then slowly sell off until the SPX was higher by +10 points. The last two hours saw the market then slowly sell off until SPX cash closed unchanged. After cash closed, the Minis kept falling by another -$10 points.

The weigh of the market seems to have come from AAPL being heavy and more talk of more delays in the stimulus. Other than that, things were quiet and not much to talk about given it was really the first week of earnings.


TODAY: October 19

TODAY – Remember that we are still in a bullish trend, but the elections 15 days way.

The minis sold off 10-15 points after cash closed, so that has to come back (move higher by $10 points), or cash has to fall by that amount. Most likely, it will be higher. Typically, these end-of-day drops or jumps are just last second orders coming in, and the market gives it back the next day. We have 2 weeks until the election. Senators are threatening to impeach Nancy Pelosi on mental competency issues. Joe Biden's son (Hunter) seems to have left 3 laptops at a store and not picked them up. I AM NOT TAKING SIDES HERE, RATHER JUST REPORTING what can happen. These (computers) apparently have damning evidence against Joe taking money from China, Ukraine and Russia. The media has ignored it, and Twitter has scrubbed the NY Post of emails published.

We are in the final stretch of the election week with a debate Thursday. This is where things get really weird and can move the markets. I am actually shocked things have not been stranger – yet. It is doubtful the stimulus will be passed before the election unless both sides somehow find a way to declare it a victory. We will fall everytime this is announced, and no one can predict what day or time it will happen.


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
(+7.84% so far)

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