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

Wednesday | April 22, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: April 21

The second day of liquidation and vomiting of crude oil, and it caused spill over into the stock market.

The market opened down -53 as measured in the SPX, bounced about 15 points to make the day's highs of 2,785 (-37.62) before falling into a range. Most of the day saw the market trade between 2727 (SPX) and 2755, about a 28-point range. It was slow moving and just drifted despite the obvious fact that we were down 3%.

Part of the loss can be attributed to IBM posting horrendous earnings – as usual – which dragged down tech companies including AAPL and AMD. We know that historically, IBM falling should not be an indication of how AAPL and AMD will act after their earnings. IBM almost always stinks, while AAPL and AMD fair pretty well historically.

The May oil contract that traded as low as -$42 yesterday bounced hard and settled at $9.06. At least people do not need to pay to sell their oil at delivery. This did not help the new front-month futures contract (June) from getting beat up hard. As a result, the Dow closed down 632 points. The SPX closed down -86.60 (-3.07%), and AAPL closed down 8.56 at 268.37.

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TODAY: April 22

We will see. These are difficult times to predict given the volatility in oil and politics right now. I am of the mind that the selling over the last two days is overdone; however, that doesn't mean we cant get more selling first. Markets exaggerate moves higher and lower.

I am still standing by my prediction (made Dec 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 -35% for the year.

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 inter42mittent volatility
(-15.30% so far)

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CLASS TONIGHT!

TOPIC: Emergency Fix

We will be dealing with emergency fixes for bull and bear runs in a portfolio and individual stock. Perhaps we test it in USO before the class. This is going to be good, and it is about time we start with a normal schedule again.

We still need to start another 5-Year Millionaire example.

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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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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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