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

Tuesday | December 31, 2019

Hello Mayumi.




NEW YEAR - 20/20

POT CLASS: Last Friday night was out POT class that we gave a sneak peak into POT 20/20. My big MORNING UPDATE on the events will come out on NEW YEARS DAY (as is custom).

This is a very much in demand update as I give out details on what classes will be held, when books will be done, and what the POT 20/20 class goals are. Things have changed here.

PREDICTIONS: One thing people love to see is my predictions for the year. Every year I make predictions – only because I am stupid. There is nothing to gain from it, and a lot to lose. The first two weeks of the year, I have people unsubscribing to the newsletter with nasty-grams along the lines of “You are nuts”, “you are a tool”, etc.


Some of the most venomous comments came when I predicted the Brexit would happen. Even more was when I said that Trump would win the White House. What people didn't understand was how pissed the country was at politicians, and they wanted a non-politician to be a politician. They didn't understand that Trump was on the debate stage with 17 career republican politicians who wanted to win. It would be a dream to win. Trump looks at things different – he refuses to lose.

Then when they said he can't beat Hillary, I laughed. When Rachael said “there is no path to 270, I told our students I am guessing he will get 300+. This was simple math. If you saw how the polls were done, it was easy math. Hillary was ahead by 12 points in polls where 80% of those surveyed were registered democrats. Just so you know....I also though Obama was going to win, even though I thought he would accomplish nothing.


If you look at every MORNING REPORT from December 31, 2018, you will see the same prediction through the year. Let me break this down for you:


1 – Much higher.

We are up over 29%. We are 7 SPX points away from having the largest run higher since 1997.

2 – Wall

It is not done, but it is going up at the rate of 1 mile per/day, which is a lot considering how he has the opposing party trying to stop the construction. It will be done by the end of his second term. (opps – the is one of my 20/20 predictions).

3 – China will blink first.

China DID blink. As a matter of fact, those are the exact words the media used 8 months later on August 6 in FOX, CNBC, CNN, etc.


4- The Fed will go back on their medication.

Powell stopped trying to be the smartest and most independent Fed governor. Leading up to this prediction, the Fed had just crashed the market 20% with their terms “far from neutral”. Three days earlier, the Fed stole Christmas was a major drop. Since this, we have not had the Fed sink the market one time. Probably my most accurate prediction.

5 – Trump will not stop tweeting.

Get ready for my 20/20 predictions coming out on Jan 1.


YESTERDAY: December 30

Yesterday's MORNING COFFEE REPORT was good. I specifically stated (see below) that the Minis would open +5 higher, and the SPX cash would be unchanged. That is EXACTLY what happened.



Within 40 minutes of the open, the Minis and SPX hit the lows for the day. I am not convinced that it was anything more than fear that selling could occur that caused the selling. People are already jittery about the new year. At the lows of the day, the SPX was -$23.45, but perhaps 5 points of that was just adjusting for the strange cash v future closing on Friday.

It seemed like a big move, but this was only a big move relative to how much the SPX has been moving for the last 2 weeks. In the big picture, however, the range was average – maybe even below average.


Though the SPX closed at about the same levels as the opening lows, some stocks were in very different places. On the open, AAPL hit a low of 285.22 (-4.58), but closed in the opposite direction of 291.52 (+1.72).

TSLA had its first real down day in a while as people started to wake about the realistic challenges the company faces ahead, and the amount is has run higher so far.


TODAY: December 31


Usually a very quiet day after the first 30-60 minutes, people usually wonder why the day of New Year's Eve is not a half-day like Christmas Eve. Once in a while, things go nuts on New Year's Eve markets, and it gives a glimpse into what January will be like. We will see, and no one can predict.

I do know the markets are predicting a Trump 2020 victory or I would have gone home long puts naked because people would want their tax selling before the predicted proposed Democratic tax increases. Because of this, things so far are expected to be calm.

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Separate update coming.



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