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

Friday | August 28, 2020

Hello Eizell.



YESTERDAY: August 27

SPX 3500. Just days ago, we were messing with 3400, closed just under it, and then went above it the next day. We are now doing that with 3500. I hate to ruin the surprise by giving my prediction for tomorrow here (in YESTERDAY) instead of below in (TODAY), but we will likely close above 3500 today.


The day began with the ending of Fed Chair Powell's speech at Jackson Hole. If Fed speeches are drug dealers to the market, yesterday's speech was Pablo Escobar. The markets woke up to having its whole wish list granted. The Fed is now going to take the average of inflation numbers. The Fed is now going to let the economy run hot a bit without raising rates. The Fed is going to give all the stimulus it needs to if the economy is not running hot.

There is a new policy by the Fed, which often scares the market. Yet, yesterday it was confused with a slight amount of optimism. It essentially stayed flat to slightly bullish ahead of today's splits in AAPL and TSLA.

Speaking of Tesla, Elon Musk just made it to an elite group of people – the $100 Billion Club. Finally, someone deserving and not in the social media/media biz. By the way, for those keeping score and who scoffed when I stated we would be higher on the year (when the market was down -36%), the SPX is now up almost 8%. You like apples (a Good Will Hunting reference)?


TODAY: August 28

TODAY – The market is still very strong, however, we need a healthy pullback.

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).

Hold on people, we are about to go vertical Maverick. We need a pull back for this market to be healthy, but that doesn't mean it is coming for a while. The bull sharks are in a feeding frenzy and there are trillions on the sidelines.


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
(7.85% so far)

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Like the Shark Fin from yesterday? We need to keep putting more and more on, the higher this goes. Yesterday's JOKE OF THE DAY was “timing is everything”. I think we proved that with the Rolling Thunder spread example. Selling the top and buying the bottom is always fun, but rare.



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