Facebook Twitter YouTube

Having trouble viewing this email? Click here

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

Wednesday | August 26, 2020

Hello Eizell.



YESTERDAY: August 25

What are the odds the Dow will close up exactly 263.86 points two days in a row?

It was a slow and uneventful day with the SPX and Dow trying to stay positive while the former Ms. Universe candidates, AAPL and TSLA, were being sold. These stocks had let the markets on their wild ride to where the SPX is now up over 6.5% for the year, and broke through SPX 3300 and 3400 because of their leadership.

While AAPL was at its lows of 492.21 (-11.22) and Tesla hit 1968 (-46.2), the SPX dipped briefly into negative territory, but never felt weak. People in the media were talking much of the day about these two names selling off. Worrying seems to work as 95% of what they worry about never happens.

As has been the characteristic of this market, the last 90 minutes saw buyers come in and goose the Dow and SPX above its range for the day. New records again.


TODAY: August 26

TODAY – Strong again (or until further notice - lol). We do have a breather coming, maybe even testing 3400, but not sure when.

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).


I live in one of the most democrat cities – Chicago. When Hillary and Trump were running in 2016, I could not throw a canned ham out of window without it hitting a car (or millennial) that didn't have a “I'M WITH HER” sticker on it. Thank goodness I never damaged any cars.

Yet, Trump won because the big democrat cities of Chicago, LA, Baltimore, and New York do not represent the whole country (by far). Is anyone seeing any Biden stickers anywhere, or did he forget to send them out? “Stickers... pot stickers.... Chinese food.....fortune cookies....get me the Mongolian beef”.

Did Corn Pop steal them?

I still see Bernie stickers, but mostly on cars more than 25 years old, and with less than 4 hub caps. They usually have duck tape where a window once was.

Hillary was a flawed candidate, but she did have enthusiasm with her base of supporters. The base was just not big enough. I don't see how the media can claim Biden is in the lead by the same amount Hillary was. And if I notice this, the smarter guys managing $1 trillion in funds know who is going to win the election.

This means the market is not worrying about Biden's tax increases – and focusing on 4 more years of Trump. You may not like Trump, and that is fine, but the stock market prefers him.


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
(6.59% so far)

POT Logo

We started a QQQ/SPY pair hedge. This is following up on the class INDEX PAIRS we had the previous week. Very sexy. Tonight's class is LAYER SPREADS #2.



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



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