Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Thursday | September 3, 2020

Hello Eizell.



YESTERDAY: September 2

SPX 3580.84. The fourth day above 3500, and close to 3600.

The markets set yet another record, and the SPX is now higher for the year by almost 11%. We did see something different occur. In the past, we have seen occasional selling in the leaders like AAPL, TSLA, ZM, AMZN, etc. When the selling occurred, the money stayed on the sidelines so the indexes would sell off as well.

Yesterday, we saw AAPL fall -2.1%, TSLA fall -5.8%, ZM fall 7.5%, etc. These had been high flying stocks that helped give the markets buoyancy and guidance. When these leaders sold off yesterday, it did not drag the market lower, instead the market went higher as the money was reinvested in other names.

Yesterday was a shift and rotation of assets. The overbought was sold to invest in the over sold. This is how many professional fund managers keep their inventory under control to avoid a lopsided portfolio, but we have not seen it this obvious in a while. The markets, in other words, have shifted to the last leg of the bull market (in my opinion).


TODAY: September 3

TODAY – STILL STRONG and getting stronger.

LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off – probably after the election (This one has been here for WEEKS. Nothing changed).


We went from 3500 to close to 3600 in 4 days. It is obvious there is a feeding frenzy on. Some of the buy is speculation and riding the wave, while other buying is actual late-to-the-party long term positions.

When we actually do get reason to pull back to the downside for a day, we will get rid of the speculators, but more buying will come from idle cash.


We have 60 days left until the election. The games will begin in earnest. Expect more riots and corona scares. I don't believe in coincidences, if it is not an act of God. How are they keeping it a secret who is paying for convoys of “peaceful protesters” to destroy cities? It is not a secret, the media just will not admit it.


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
(+10.84% so far)

POT Logo

The class was slightly different than most. Typically, we talk about a strategy, how it works, how it is best used, etc. Yesterday was more of a 60-day game plan of lining up HUGE amounts of downside protection should we see any major falls between now and the end of the election.

I KNOW the media says Biden is going to win, so those who still believe the media is unbiased believe it.

Maybe the media is smarter than the market, but the market believe Trump will win.

A surprise Biden victory, or a contested election, mail-in voter fraud claims, etc, could shock the market to the core. We want to be ready for this, especially given how far off the bottom the market is, but want it without much cost. Last night was that discussion.



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.


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.



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: “,” “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.

COPYRIGHT (c) Material 2019 | Stratagem Trading |


If you wish to no longer receive our newsletter, you can Unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States