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

Friday | September 11, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: September 10

SPX 3339.19 (59.7) , or -1.76%

It is tough sledding these last couple of weeks. NO ONE knows what is going on. The market is acting like a lighting bug in a bottle, bouncing around violently in all directions looking for an escape.

Yesterday we opened higher, which I suspected would occur. I pointed out that we would likely test the previous day's high, and we did within $1 SPX point. That is as close of a shave as you get in a 3400 index. That is the same as $0.01 in $34 stock.

We sat at the previous day's highs for the first 100 minutes before falling on news that took AAPL lower, and we followed suit. As AAPL fell from 120.50 to lower levels the SPX followed moments later, indicating traders are still nervous about further AAPL declines.

Later, we heard that the Senate did NOT pass further stimulus. At first, the market didn't seem to mind or react, but it did slowly erode AAPL's price. This sent the market to levels below the unchanged line.

Two hours before the close, traders gave up hope of a bounce, and sellers came back in force the SPX to 3329.25 and AAPL down over -$4 on the day. The close did NOT see market orders to sell on the bell, rather we were still following AAPL for direction. Because AAPL started to bounce a little off its lows the SPX bounced $10 points off its lows – closing down -1.76%.

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TODAY: September 11

TODAYHard to say. Everyone is confused, but much of me still thinks this selling is stupid.

We will see. These short weeks are somehow always hard. You would think a 4-day week would be less mentally taxing than a 5 day week. You would think, but you would be wrong. We should see a modest bounce today, but who knows what is in store? The Senate could surprise the world and pass a bill for $1 trillion. Anything can and will happen, and only will get crazier over the next 53 days.

NEXT BIG DAYS:

Sept 29 – Presidential debate #1
October 15 – Presidential debate #2
October 22 – Presidential debate #3

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.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(+3.36% so far)

POT Logo


Yesterday, we started entering another SPY vs QQQ index pair that is 70% complete. I didn't want to overwhelm at first, and want people to see the process. It was an ideal day for a RT spread had it been obvious AAPL was going to drag the market down again, or that the Senate would reject another Covid stimulus package.

When it comes to politics, the only thing that is certain is that nothing gets done unless it benefits the politicians. Perhaps that is why my favorite political joke is:

What do you get it you ask a politician to tell 'the truth, the whole truth, and nothing but the truth'?

3 different answers

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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 to come.

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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