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

Wednesday | July 22, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: July 21

After the market flew through massive resistance of 3233 on Monday (and became positive for the year), we saw Tuesday commence with more buying – probably people afraid of missing out, people becoming optimistic and short covering. The highs of the day were made in the first 20 minutes with the SPX hitting 3277.29 (+25.45). After the highs were made, the market backed off as news about AAPL's iPhone sales slowing (as they lose market share to people who don't charge $1,100 for a phone that is outdated in 3 years) took the stock from +$4 to -$6 at the lows.

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It was not until the last hour of trading that the market really got hit hard. The market fell from 3275 (+25) to a low of 3247.77 (-4.07) after senators announced that the next round of free money falling from helicopters would maybe not be done by next week.

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TODAY: July 22

TODAY – RUN FOREST RUN.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election.

I might be off a little on my prediction for the year. At the start of the year, I had no idea the Fed chair would take Prozac to overcome his fear of inflation and go “all in” on rate cuts. He is throwing everything at the economy he can. Even the unemployed are trading their stimulus money with Robin Hood accounts.

I am starting to think the SPX could test 2500 by the end of the year. We have not had the election see-saw as the media prints stories of how Biden is going to win, and the higher taxes he proposes are good for the economy. Traders will see it differently when that happens, and the markets will decline.

But we still have to wait 2 weeks to find out who Biden is going to pick as his successor – I mean vice president. After that, we will have to hear reasons why Biden thinks it is in the nation's best interest to not debate President Trump. He might get lucky and a second wave of coronavirus hits, making his excuse real. Maybe Trump will go to his basement to debate? All of this will play havoc on the market with big swings, but weeks and weeks from now.

There are still 104 days until the election. That means one more impeachment attempt and Russian hoax. More sponsored riots under a guise of something else. The circus tent for the election is just being erected, so in the mean time – HIGHER. All I know (hunch actually) is that something big is coming that “coincidentally” affects the election debates. Biden can't be allowed to debate Trump – his handlers won't allow it.

SPX 3393 is the high of the year. We are 140 points away.

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 -35% for the year.

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.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(+++++0.82% so far)

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This week's class will be a TRADING HOURS class that starts 30 minutes BEFORE the market open. A vote by students wanted to change it to “MORNING FADE” and entering orders to be executed prior to the market hitting the price. It is going to be fun.

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DISCUSSION BOARD

Up and Running for POT students (so far).

Really quickly...

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P.O.T. Schedule

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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.

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