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

Monday | March 23, 2020

Hello Friend.

Resending the morning report for today. We have been having issues about emails going to people's spam folder today. Since we have received many emails asking about today's newsletter, we are resending it again to the entire group. Our apologies for any duplications.




What it all comes down to
Is that everything's gonna be fine, fine, fine
'Cause I've got one hand in my pocket
And the other one is giving a high five

—Alanis Morissette

Thursday Night

Once again the Minis were trading in the night session ALL OVER THE PLACE. They were up 50, down -110, up 5......nuts. With several days in a row of this action, I concluded that the heavy selling was over. The market was acting so confused that if there was still mass liquidation going on, then the markets would not have the violent bounces.

Violent bounces are common in major corrections, but usually not as often.


The market opened higher by about +30 points and rolled over – most likely the result of the “triple witch” where there was stock to buy on the opening print.

After the first 10 minutes of buying, the SPX rolled over and fell to -30 (from +30) before bouncing higher again. The second swing higher, the market was up 500+ Dow points and 43 SPX points. This tricked me into believing we were FINALLY making a bottom.

In that morning's MORNING COFFEE REPORT, I was guessing (incorrectly) that we were at a bottom. There was too much see-saw in the price ranges to think there was heavy selling continuing. I was premature.


The market then fell and parked just under the “unchanged line” until the last two hours. Once again, we had a Trump press conference and once it was over with, we started to sell off hard again. The 500 point gain ended with the market down 913 Dow points, breaking through all support levels.


TODAY: March 20


All traders have been sent off the floors to trade from home. This will be new for them, and I expect hiccups along the way.

How is this going to end?

Scenario Number 1

The best guess is that one day, we wake up to news that the numbers of infected in the US has stayed steady or declined a little, and people all sigh relief that the “worst is over”. That is just a best guess.

Scenario #2

We wake up one morning and get a briefing that some drug they are fast tracking has been used before on something else and considered safe, and it is showing HUGE promise in stopping the virus. There is a lot of hope being built up in the malaria drug Chloroquine. That would most likely be a bottom with a hard bounce.

Until then, numbers of people infected are going to double every 4 days. People are going to panic about the economy being dead. The National Guard being called up is freaking out people concerned about martial law, which would likely not work for long in this country. The media is offering no glimmer of hope, focusing on the glass is half empty, and the other half is just air.



The Fed is throwing everything it has to help the economy, but people think they are out of bullets with interest rates at 0%, and all the Q/E from 2008 – 2009 still hanging around.

More panic selling until something changes, though it is getting way overdone by any measure. I am more afraid to be short than long at this point.

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.

You’re braver than you believe, stronger than you seem and smarter than you think”.
—Christopher Robin, Winnie the Pooh

Average year with lots of inter42mittent volatility
(-28.66% so far)

POT Logo

Friday was the bonus class in the morning to show the closing of the Jelly Roll. I hope people loved it and saw just how powerful it is. Though I have done classes on this before, which we gave POT people a recording of, some are calling for an additional Q/A class on this. That is up to you. Let us know your thoughts.



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.


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.

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