Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Wednesday | July 22, 2020

Hello Eizell.




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news about AAPL's iPhone sales slowing (as they lose market share to people who don't charge $1,100 for a phone that is outdated in 3 years) took the stock from +$4 to -$6 at the lows.


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.


TODAY: July 22


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.

Average year with lots of intermittent volatility
(+++++0.82% so far)

POT Logo

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.



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



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.



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: “,” “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 |


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