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February 16, 2017 | The Yellow Flag Is Out

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

The Dow Industrial Average now sits within 429 points of a potentially very important ‘Hidden Pivot’ target at 21,049 that was first signaled when the Dow hit 18675 back in November. The target is derived from purely technical calculations, and when I first aired it my gut feeling was that it seemed unlikely to be reached. However, I’ve learned over time to ignore mere feelings and instead trust the charts, especially when they seem to conflict with logic and ‘fundamentals’.  That is the case now, in the extreme. A real estate bust is taking shape and stocks have already discounted the best we might hope for, economically speaking, from Trump’s first year. It is also a concern that AMZN, which I rank as THE most important stock market bellwether, is closing on a potentially very important rally target (see my tout below). Although there is still some upside to be milked from the aging bull market, I have unfurled the yellow flag nonetheless — for purely technical reasons.  Let buyers beware.

February 16th, 2017

Posted In: Rick's Picks

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