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November 21, 2016 | ‘Dow 20,000 Fever’ Not Far Off?

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 Industrials were feeling their oats Monday, forging higher ahead of the Thanksgiving holiday. At the intraday peak the Indoos were just 39 points shy of the 19000 threshold. This round-number benchmark undoubtedly has exerted a magnetic pull up till now, but we might expect it to turn at least mildly resistant as buyers probe and sniff it in the days ahead. Expect the same dynamic, only moreso, when bulls catch ‘Dow 20,000 Fever’ a few hundred points above these levels. That’s a very big number psychologically, and we therefore shouldn’t be surprised to see a lengthy stall if and when it is reached. For now, though, continue to use the 19489 target that I flagged here a while back as a minimum upside projection for the near term; and thence 19723, a Hidden Pivot resistance associated with a rally pattern of somewhat larger degree.

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November 21st, 2016

Posted In: Rick's Picks

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