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

Tuesday | August 11, 2020

Hello Friend.



YESTERDAY: August 10

Yesterday in the Morning Coffee Report in the abbreviated daily forecast, I put down “Choppy, but higher”. We got choppy and higher.



With politicians jabber-jawing about the latest covid stimulus package, the only thing that could make the day stranger is an unknown analyst predicting iPhone sales would drop as much as 30% if the WeChat app was removed.

My kids have banking, chat, games, Spotify, directions, Netflix, Facetime, more games, etc. Was this FOOL actually obtuse enough to think WeChat was 30% of AAPL? Crazy enough, the market thought there was something to it. The stock was as high as $455.10 (+10.65) when the brilliant, logical and well researched analysis hit the “wire”. From there it fell to a low of $440 (-4.45). This was a $15 point reversal, and to quote Joe Biden ….”Come on man”. Seriously? WeChat, like Corn Pop, was a bad dude. LOL


I thought this was more pathetic than anything I have seen in weeks, which says a lot in the year 2020. When I saw what that did to the stock, we got long AAPL. POT is designed to take advantage of things like that.

The Dow closed up 375.96 (1.3%), the SPX closed up 9.19 (0.27%) and the NASDAQ closed down -54 (-0.49%).


TODAY: August 11

TODAY Touching record high (3393.52) by end of week.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election (This one has been here for WEEKS. Nothing changed).

We closed at 3360. The all time high is 3393.52, or 1% away. This is almost inevitable this week.

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 -36% for the year (this has been here since January 1).

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
(4.01% so far)

POT Logo

You guys like the move in AAPL? If you didn't like that, you had to love coming in long the 3355-3360 / 3380-3385 call condor with cash closing at 3360.47. If you don't like that, well then I have some bad news for you.....I am not as long as many deltas as I wanted today.



Up and Running for POT students (so far).

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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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