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August 10, 2017 | One Way to Tell Whether This Selloff Is the Start of the Big One

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.

Thursday’s selloff left some important questions about the health of the bull market dangling. Two stocks — AMZN and Boeing — could tell us as early as Friday morning whether investors have serious reason to worry. Both came within inches of Hidden Pivot correction targets after getting sold down hard. If the targets are decisively exceeded it would imply that the strength of selling in the market is now greater than the buying power that has pushed the broad averages to a continuous series of new record highs. We should also watch AAPL closely, since heavy selling in this important bellwether did no technical damage to the long-term charts. In fact, the stock, which settled at 154.95, down $6, still has an unfulfilled, very long-term rally target at 168.46.

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August 10th, 2017

Posted In: Rick's Picks

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