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

Thursday | September 17, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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DAYS UNTIL ELECTION = 46
Days First Debates = 11

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YESTERDAY: September 16

SPX 3385.49 -15.71 (0.46%)

The market wanted to go higher yesterday. It was The Little Engine That Could. It tried to pull toys (AAPL) and food, just like the book. Despite the AAPL opening unchanged and slowly sliding down hill, the S&P 500 said “I think I can, I think I can”, and tried to pull the index through resistance of 3425.

Then Jerome Powell came out, and the little blue engine broke down saying “I thought I could, I thought I could”. The minutes of the meeting were perfect, and more than the market could hope for. This did take the market above 3425 until Powell started to speak, and gravity became too heavy.

I don't get it. I really don't see how the markets could lower Bernanke, the world's foremost authority on depressions, and a guy who was the last to see us heading into a depression.

Janet Yellen was loved as well, with the exception of the time she sounded like Joe Biden and spoke without a coherent sentence. The following Monday, the market opened limit down. Yet, she was soon forgiven.

Powell, on the other hand, doesn't seem to get the same loving. Perhaps that is what happens when he was the Grinch Whole Stole Christmas in 2018 by trying to raise rates and causing a crash that last months. But who hasn't caused a crashed at the Federal Reserve? The crash in 1987 was cause by Greenspan.

Yet, is there no penance that Powell can do to absolve his sins and make him loved? Once AGAIN, when he spoke, the market goes lower. Typically, this is a 49-hour virus and we should be fine Friday.

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(OK. You got me on the Emperor Barbarossa one above. I like history, but I still don't know what the heck this is about [yet]). Personally, I would have mentioned that the US Constitution was signed on this day, but I have a millennial doing these tabs for me, and they never heard of the Constitution). BTW. I don't create all of the JOKES OF THE DAY either. I did do yesterday's AAPL phone one, but not today's.

TODAY: September 17

TRIPLE WITCHING WEEK

TODAY Not testing 3400 this time. - LOWER

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The market has been hit by THING ONE and THING TWO – the overrated twins.

THING ONE

Tuesday, the market got hit by Tim Cook's incredible magic show. Making old products look like innovative new products has worked for years, but the markets saw the slight of hand yesterday.

THING TWO

Wednesday (yesterday), the market got hit by THING TWO – Jerome Powell. The Federal Reserve chair gave the markets an early Christmas gift. Powell said the Fed was going to keep rates low and the Fed accommodation long past achieving the desired 2% inflation rate. This immediately had the effect of pushing the projected date of the first rate increase out to 2023.

The markets loved it and ran above the resistance area of 3425 for a moment, until Powell took the stage and started to talk. This has seldom worked out well, and usually has at least a two-day half life. Today will be day 2.

More selling courtesy of Things 1 & 2. The most influential people to the market goose-egged it back-to-back.

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
(+4.79% so far)

POT Logo

Yesterday was the typical day to have the POT class, but it was voted on to move it to Friday in order to have a market hour class where we walk through the Jelly Roll closing procedure.

On the close yesterday, we bought put spreads that will be spread off on the open today.

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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.

As mentioned above, I did not create the meme below. I would have been too busy to notice my dad being busy.

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Disclaimer

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: “StratagemTrade.com,” “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.

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