image
Stratagem
Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Tuesday | February 18, 2020

Hello Mayumi.

YESTERDAY'S CLOSING PRICES

image
image
image
image

YESTERDAY: February 14

Great Morning!

I hope everyone enjoyed their elongated weekend and Valentine's Day. Thanks George Washington and Saint Valentine of Terni (not to mention Pope Gelasius I)! St. Valentine was even mentioned by Ophelia in Shakespeare's Hamlet.

Open For 2.5 Hours

On news that China was simulating their economy and were finally “coming clean” on death accounting, the markets opened higher for the first 2 ½ hours. The SPX got as high as 3,380.69, closing in on another big number – 3,400. The Dow got within 100 points of its 52-week high.

2.5 Hours Until Last Half Hour

As has been the case of late—higher opens see a subsequent fall, and lower opens see a subsequent bounce—the jump higher on the open fizzled out. The SPX had a high net change of +6.75 and sank to a low of a negative net change of -7.79 (3,366.15). Despite the see-saw in the market, the action was quiet and in a tight range.

Last Half Hour

The SPX had a +11 point jump higher in the last half hour with the cash closing just under the highs of the day at 3,380.16 (+6.22).

NOTEWORTHY

Most of the volatile stocks for the last month were stuck in the mud. AAPL closed up $0.08. TSLA has had a crazy run higher and closed down -3.97. BA closed down -2.33. Marijuana and fake meat companies were the big winners, while oil continued its fall on lower economic activity predictions.

image

TODAY: February 18

image

Every Bungee Cord Eventually Snaps.

So far, we keep bouncing because of the Fed's QE #4, international rate lowering, corporate buybacks, and Trump tax credits. We can keep bouncing, and hard, if this coronavirus shows signs of fizzling out.

NOW... scientists at Los Alamos (the lab where Oppenheimer, Feyenman, Enrico Fermi, Edward Teller (Father of hydrogen bomb), Leo Szilard, Hans Bethe, Niels Bohr, etc) are predicting that the coronavirus will not be contained, and 4.4 million will die.

That will slow the economy down hard. This will slow corporate earnings and hit the stock market. AAPL this weekend already cut its guidance because of the virus.

image

We are also seeing MORE BS from China with their housing data. They are showing price increases despite developers offering discounts, and still unable to sell. I have been saying for MANY years they are a giant Ponzi scheme—and now we are finally seeing the Emperor's new clothes.

Their economic minister or statistics minister must be Jon Lovitz – you know....the guy married to Morgan Fairchild.

image

Why is the stock market still running higher? That is how bull markets move. They ignore all bad news. The markets having been taking news of China stimulating their economy as a positive, but if the virus worsens, it will be like trying to stop an economic avalanche with a shovel.

In 1929, the stock market ignored soaring interest rates on an economy given easy credit (for the first time for washers, refrigerators and the Model T car), slowing sales, etc. Stocks kept soaring until the birth of the Great Depression—October 24, 1929. We saw a DOT COM bubble that EVERYONE knew was overdone continue to run higher for another year (or two) before falling.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(+4.62% so far)

POT Logo



A separate update will be sent out.

image

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

image

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.

image

Disclaimer

For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “StratagemTrade.com,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

Stratagem does NOT offer auto-trades. Case studies being provided are historical examples illustrating how a particular commodity, equity, index and/or option strategy could have been implemented. Stratagem Trading is not providing students with real time trading opportunities, nor giving advice. We strongly recommend that you consult with a licensed financial professional for all your financial matters.

COPYRIGHT (c) Material 2019 | Stratagem Trading | StratagemTRADE.com

here.

If you wish to no longer receive our newsletter, you can unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States