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

Thursday | October 1, 2020

Hello Friend.





YESTERDAY: September 30

SPX 3363.00 +27.53

The day opened higher and took off like a rocket after reports came out that politicians were close to figuring out how to spend $2 Trillion to help because of covid. The market kept climbing all day, and AAPL helped climbing over $3 at its peak.

At 1:23pm Chicago time, Mitch McConnell came out and said that the parties were very, very, very far apart. With that, the minis fill -$27 points in seconds. We went from +$50 to +23 net change on the day. This prompted sellers to get nervous and sell.

From here, the minis went negative on the day and SPX cash fell to -$5.00 before bouncing.

Now things get nuts. The minis jumped to +23 (from negative). Once cash closed, the minis fell -$20 again. Nuts. Welcome to the jungle. This month is going to drive people nuts.


TODAY: October 1

TODAY – News Dependent Gong Into Elections.

After cash closed, the minis fell over -$15 points lower. Most of the time, the minis will bounce +$15 points back the next day. If not, then cash (SPX) will have to come down to meet the futures.


Because Nancy Pelosi has to play politics over people, United (UAL) and American (AAL) are laying off 32,000 people without the passing of the covid bill. Thank goodness it will not effect Nancy and she can still eat her $12 per pint ice cream. You see....she threw in a poison pill in the deal trying to sneak in $500 BILLION in funding for local and state “wish lists”, and this blew up the deal.


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.

Average year with lots of intermittent volatility
(+4.09% so far)

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