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

Tuesday | March 10, 2020

Hello Friend.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: March 9

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OPEN

It was a day of panic. In the per-markets, oil was falling 31% because of a trade war between Saudi Arabia and Russia. Many people view oil falling as an indication that the economy is going into a recession because people are not using petroleum for manufacturing and transportation of goods to market. Sometimes this is true, but not when it is obvious the falling prices are from a trade war.

We also had everyone with a computer keyboard blogging, emailing, positing, face-booking, etc. about the coronavirus. The media got people so nervous about the “plague”, that they started to hoard water, toilet paper and Purell. A bottle of $6 hand sanitzer is being sold on Ebay at $100.

BTW, if you see one on sale for $123.45, that is my auction and I recommend you buy it. LOL (just kidding). Im not selling until the bottle is half empty and I can get $200. People...hand washing works just as good (if not better).

Charles Darwin was wrong, and here is the evidence.
At first I through it was Jill Biden protecting Joe at a rally again.
AFTER looking at the image a second time, I realized 1 roll was not enough.

And had they gotten there an hour earlier, they could have stole 2 car loads
from my daughter who just bought the place out.

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These two events sent MINIS down in the night session, oil down 31%, and panic bond buying to Limit Up levels. The 10-year got down to 0.31%. Panic feeds on itself like the first lemming jumping off a cliff.

This caused a LIMIT DOWN pre-market open of the Minis falling 145 points, or 5% (the night limit). Once the market opens during normal hours, the limit is expanded to 7% (-225). It took us only a few minutes to hit that. We shut down for 15 minutes (as seen in the chart above).

TRADING DAY

News eventually came out that President Trump was going to talk in the evening about cutting taxes to help with the losses from the virus. At the same time Bernie Sanders was on television talking about raising taxes to pay for everyone to get the Coronavirus test free. The problem is I don't want to pay for the test for myself unless I am exhibiting symptoms.

This optimistic news allowed the Minis and SPX cash to bounce from the lows of 2715 to 2863.89 in cash levels (-109). This is a huge bounce that fell apart again as panic once again set in. Various media networks show the cruise ship with potential virus patients pulling into port for half the day. We were once again getting the slow drip of negative news with updated patient numbers and news cities under quarantine. This did NOT help the markets stay at the day's highs, and we eventfully settled lower with the Minis down -200 most of the day.

SURPRISES

SPX closed down -7.60%

Dow closed down -7.79%

AAPL closed down 22.86 at 266.17 (-7.9%)

VIX closed at 54.46 (up 12.52)

PEOPLE

There are many, many thousands of people with the virus. Deal with it. There are just no tests, so no one is being tested. If not tested, you don't have it, right? If my parents didn's see a report card, I didn't get a D in art.

Doctors are saying don't go to the physicians with shortness of breadth, cough and fever because they can't test you. I guess we go to witch doctors instead. By the way, that is the symptoms of the virus. We are hearing about 550 cases right now. There are probably 5,000. My grandkids could have it right now from school, but they are not being tested by their doctor. Unless they start to cough up blood or their temperature gets above 104, I am not worried.

Making matters worse, all we are hearing are conflicting news about the virus, and told that there is nothing to worry about. Then way are so many people worried, and so many places under quarantine? What we need is someone other than politicians getting on TV explaining FACTS.

What is scarier than the virus is people's panic. What is scarier than that? Our dependency on China for our supply chain of medication, antibiotics, etc. How is a potential enemy the only ones that make out antibiotics?

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TODAY: March 10

UP BIG for 2 reasons:

  1. President Trump is being proactive and cutting taxes to combat the negative effects the virus has on the economy.

  2. Yesterday's drop was nuts. The fall in oil was as much to blame as the virus panic. The both happened at the same time, making the situation worse.

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 intermittent volatility
(-14.8% so far)

POT Logo



We will see how the day goes. Right now the minis are up 70. If we close higher and things calm down a little, I may have a class in the morning Wednesday at the start of trading hours.

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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.

I sent this one to POT people today, but I laughed so hard that I had to use it again. Remember she won with less than 12,000 votes total.

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Disclaimer

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