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

Friday | February 14, 2020

Hello Mayumi.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: February 13

Pre-Market and Open

Wednesday after the close, the market started to glide higher in the night trading session until 6pm (Chicago time). This is when a report came out that showed the more accurate number of coronavirus patients and deaths were, and this took the Minis down from +2 to -$14 in moments. The SPX closed up +24 the previous day on positive news about the virus, and the next day the SPX cash opened down almost -$19 points. Panic selling on the open made this the lows for the day.

TRADING DAY

Two hours after the open, the SPX made it all the way back to unchanged for the day, though the Dow was down about -60 points – mostly because AAPL was down -2 to -3 points all day. Though SPX cash did nudge to a high of the day of 3,385.09 (+5.64), most of the day the markets were quiet other than the open and close.

CLOSE

The last hour saw softness in the major indexes. The SPX closed down -5.51, the Dow closed down -128 and NASDAQ closed down -17.49. AAPL closed down -2.33 at 324.87.

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TODAY: February 14

HIGHER

Unless another surprise comes out of China or Iran, we will move higher. I am still expecting action against Iran by the end of the year as they get very close to having a nuke. President Trump has sternly stated “Iran will never be allowed to get a nuclear weapon”.

Even with yesterday's bad news coming out of China about the coronavirus, the SPX only closed down minimally. Traders focused on the increased cases of virus with an attitude of “we kind of knew China was fudging the numbers, so nothing has changed”.

The virus has been in the news since January 23rd (ish) when the SPX was at 3,325. Yesterday, it closed at 3,374, about 49 points higher. Even with the new virus on people's “concern list”, the SPX is 10 option strikes higher.

Right now, bad news is no news, and no news is good news – for now.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(+4.43% so far)

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We started a LAYER SPREAD example that will prove to be a lot of fun. There were some questions after the close that I will address in the updates.

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LAUGH OF THE DAY

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