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July 16, 2017 | We Are Shocked…SHOCKED! that the Fed Has Turned Dovish

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.

Perceptions that the Fed has turned dovish sent stocks wafting higher last week, but how high can they go if driven by this allegedly ‘new’ piece of information?  There was never much room to do any significant tightening in the first place; now, with the housing and auto sectors rolling over, odds of another rate hike this year are practically nil.  Under the circumstances., with the stock market seeming to discount Fed actions that had already been discounted to death, we should be very skeptical toward the rally. Although I have higher targets outstanding for the major averages and bellwether AMZN, the targets are not much higher, and so we should be prepared to fade strength in the week ahead.

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July 16th, 2017

Posted In: Rick's Picks

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