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

Monday | October 5, 2020

Hello Eizell.





YESTERDAY: October 2

SPX 3380.80.00 -32.36

The chart for Friday looks like a pre-teen's EKG during his first kiss.

Thursday night, we learned that President Trump had the dreaded virus. The SPX opened down 57.11, which was the low of the day. It is very typical that all the sellers come out on the open on bad news, and then bounce. This is exactly what happened on Friday.

After the open, the SPX bounced to within about 5 SPX points of the day's highs, and the rest of the day we bounced between the highs and lows.

The day ended with the SPX down a mere 32 points, which is about a normal day given the current volatility levels. AAPL is still acting as the North Star for the markets, and it closed down -3.77 after slipping an extra $1 on the close.


The day can best be described as see-saw between horrific news and great news. Anytime a President is gravely ill, the market wants to fall. Anytime the government is about to give away $2 trillion to people to stimulate the economy, it is a huge plus. We had these two polar forces arm wrestling all day, and the reason corona virus won by a small margin was reports that there was not going to be any more work down on corona stimulus over the weekend.


TODAY: October 5

TODAY – Higher – Much Higher

Unless Trump's health takes a negative turn for the worse, his having the virus is “old news”. The markets will keep one eye on it, but pretty much ignore it. Today, the markets will start to focus on when/if Pelosi will stop playing games and push through a honest stimulus package so 32,000 airline employees (and others) don't get laid off.


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
(+3.64% so far)

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