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

Thursday | June 11, 2020

Hello Eizell.

YESTERDAY'S CLOSING PRICES

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YESTERDAY: June 10

The day was a typical Federal Reserve Day.

The market seems to like the MIGHTY OZ behind the curtain, and not out for display.

The $3 Trillion Dollar Man, federal reserve chair Jerome Powell, couldn't get any love regardless of how much candy he hands out to the kids.

The Fed Chair promised another $120 billion in cash; to keep rates at 0 until 2022, and offered apologies to everyone in every racial group.

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Another $120 billion was not enough to satisfy America's now diabetic sweet-tooth for easy money. A measly $120 billion at this point is the Brach's jelly nougat of Halloween. On the close, disgruntled trick-or-treaters egged and TP'd the stock market's house.

The Dow closed down 282 and SPX closed down 17.04. I suspect today will be worse.

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TODAY: June 11

TODAY – The ole “flaming bag of dog poop” trick
LONG TERM – NEW ALL TIME HIGHS (possibly), and then a NASTY trade war sell-off

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Yesterday, the markets signaled their unhappiness with fed chair Powell's remarks, and his vision of the economy. This poor guy has been the Rodney Dangerfield of fed chairs, never getting any respect.

Yesterday on the close, traders metaphorically egged his house/remarks. I suspect traders will bring friends back faster than Antifa and do the “flaming bag of dog poop” Halloween trick on the market today. A little toilet paper hanging from the trees is not enough for the mini zagnut bar the chair dropped in everyone's bag yesterday.

I have no idea why he doesn't learn from Greenspan and get himself a $60 pound worn out briefcase and speak in circles to the point no one knows what he is saying. It worked from Alan Greenspan for 19 years.

We have had a HUGE run higher, and no one knew where it would stop. Apparently, it stopped at SPX unchanged for the year. We could see 1,000 Dow points gone fast.

Of course, people will freak out with panic in their voices on TV. Forget that we had a 900-point move higher last Friday (6 days ago). Time for fun!

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 -35% for the year.

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.

2020 ONE-YEAR PREDICTION:
Average year with lots of intermittent volatility
(-1.26% so far)

POT Logo


It was an important class.

Example 129

We started with a recap of the EXAMPLE 129 where we reversed the ARR into a neutral position – just in time as it turns out.

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We then went on to talk about the manner in which one can get delta neutral without losing money on unknown variables. Many people think just being “delta neutral” means they can not lose money – until they do. Only after losing thousands of dollars do they realize they had gamma, vega or theta exposure that was more powerful than the delta risk they eliminated.

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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

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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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