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

Thursday | April 2, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: April 1

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


FROM MONDAY'S MORNING REPORT: March 23, 2020

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After one of the worst first quarters since the great depression, we saw Tuesday end lower. The first day of April did not fare any better with the Dow closing down 973.65 points and the SPX closing down -114.09.

The reasons for the selling:

  • Fund managers had to hold on to some stocks until the final day of the quarter, and now that the quarter ended the previous day they elected to sell them.
  • The previous day, President Trump had a Coronavirus Task Force press conference that was very depressing for people not listening to previous updates. It was during this conference that Dr. Fauci tried to explain that they are hoping the deaths will be under 100,000. This sent the markets down. It was pointed out that had Trump not closed the boarders, the death rate could be as high a 2.2 million (or more). This was taken as a negative, not a positive.
  • Governor Coumo had his daily news conference that was so depressing. He is acting in charge, but he is wrong when he talks. He stated that 80% of people on ventilators will die. That is not true, but the markets heard it and fell 40 SPX points after.
  • NO GOOD NEWS to counter the bad news. The Fed and the government shot their load on “give aways”, and all that is left is the daily briefing of higher and higher infection rates until at least April 18.

Meanwhile, oil stayed near $20 p/b, a scary indication the world's economies are screaming to a halt. Transportation stocks that had jumped huge after the $2 trillion stimulus plan was passed, reversed hard.

AAL – (American Airlines) closed down 1.50 at $10.69 (-12.1%)

BA – (Boeing) closed down -18.44 at 130.77 (-12.36%)

AAPL – (Apple) closed down 13.38 (5.26%) at 240.91.

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TODAY: April 2

Higher – slightly

We still have nothing but daily reports from Coumo and then President Trump's Team that seem to have nothing optimistic to say. This is weighing hard on the market, but yesterday was perhaps a little overdone.

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

2020 ONE-YEAR PREDICTION:
Average year with lots of inter42mittent volatility
(-23.53% so far)

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CLASS LAST NIGHT

A great class last night where we discussed the positions—how we got them on, the adjustments and goals, and what we plan on doing with them. This is hopefully the last Q/A class for a while, and can resume our normal class schedule with specific topics and lesson plans.

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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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