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

Wednesday | February 5, 2020

Hello Mayumi.



YESTERDAY: February 4

When the media started to report on the Iowa Caucus debacle instead of the Coronavirus, the market took off to the upside. One could say that part of the market's jump higher yesterday was because it appears the Coronavirus is slowing down, but it is too early to know. There is also some evidence that China is hiding death and infected numbers.

The SPX opened higher by $10.14 and kept slowly running higher until an hour before the close, reaching a high of 3,306.92 (+58.00). APPL has been under pressure for days, but climbed 10.19 (3.3%) to close at $318.85.

Crazy can describe TSLA which closed up another $107.06 (13.7%) to settle at 887.06. This stock is up 290% in 6 months. Bonds/TL slid -1.96 to close at 143.58.

On the close the Dow settled up 407.82 at 28,807.63. The SPX closed up 48.67 (1.5%) at 3,297.59, just under 3,300.


TODAY: February 5

Tomorrow = Tough Call Short Term = Higher

The Minis are -$10 lower, probably because there was a greater than 70 point jump in the SPX over the last two days. Some could argue that this run higher may be a little premature given the still massive unknown on how bad the Coronavirus will be when the TRUTH comes out.

We parked just under 3,300 for a reason. We usually wait just under a big number before lift off.



Even if you dislike President Trump, you have to admit this was a good speech last night. Trump made the last Tuskegee Airman a General. He reunited a family whose husband is on his 4th tour in Afghanistan. And he did not use the pulpit to complain about the impeachment joke.

The Democrats did NOT clap about record low unemployment for blacks, women, minorities, etc. They did not applaud anyone in the military. Then acting as a petulant child, Nancy tore up her copy of the speech. Maybe she thought it was the constitution?

None of the antics nor the magic of the speech seems to have had an effect on the markets (so far).

Average year with lots of intermittent volatility
(+2.07% so far)

POT Logo

It has been a slow but positive start to the POT year, but every year is purposely like that. Like heavyweight champion boxing matches, I like to get a feel for the opponent in the first of a 12-round scheduled bout – especially when the opponent is an unknown.

Is he going to hit me with the Coronavirus to the left, an upper-cut on impeachment, or leave himself open for an easy knockout?

The POT classes, however, have been kicked up a notch. You will see more of that tonight with the topic being SHORT BUTTERFLY PART 2.

In addition, please remember that we are kicking things up a notch this year. As the PNL grows, so with the contract size. We are one trade working out away from going from an average of 10 to 11 contracts. It is going to be a FUN year.

See you tonight.



Up and Running for POT students (so far).

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