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

Tuesday | April 7, 2020

Hello Eizell.




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 MORNING REPORT on March 20, 2020


I have been saying for weeks now that the moment we get hope, the market will bounce. We got a little hope when it was reported that Spain, Italy and New York might have all turned the page on increases in infections. This is great news. Without getting ahead of ourselves and popping champagne corks, we sill have a long way to go. This news, however, was the first optimistic sign we have had and the market celebrated.

The Dow closed up 1627 points and the SPX was up 175 points. This is the largest move we have had in a couple of weeks.

Stocks went nuts with the ones we follow standing out as:

AMD – (Advanced Micro Devices) – Up $4.93 to close at 47.52 (+11.5%)
AAPL – closed up 21.06 at 262.47 (+8.72%)
BA - Boeing Closed up 24.25 points at 148.77 (+19.4%).


The rest of the planet is still riding the curve higher with states like California, Illinois and Louisiana still climbing fast, but this gives us hope that once people stop F-ing around and adhere to the quarantine, the numbers can taper off and decline. If the media stops lying to us soon (don't need masks, masks are more dangerous than no mask, Chloroquine doesn't work, etc.) maybe we can get this under control.


TODAY: April 7

Slight pull back on the open?????

Yesterday's move higher was huge by any measure. The question is “did we get ahead of ourselves?” How much of yesterday was real buying, and how much was just shorts getting out of losing trades? The spike higher in the last half hour tells me there was buying on the close as shorts were forced out. There was no dramatics turnaround during the day like we have seen in past runs up. This should make it easier to go back down on bad news. I have said for over a week that we saw the bottom, but are we going to run to SPX 2,800 anytime soon? We need a lot more good news for that.

REMINDER: We have a short week with the markets closed on Friday.

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

Average year with lots of inter42mittent volatility
(-17.55% so far)

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