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December 20, 2016 | Bears Reap 25 Hours of Pain for Each Hour of Pleasure

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.

buyers-have-spent-four-days

There has been precious little buying power behind the TrumpSanta rally these last few days, but the selling has been even feebler. The net result has been a slow, steady waft higher that has not quite recouped what was lost in just two hours of selling on Friday. If you do the math, you can see why bears might be fearful of getting short at these levels. For in fact, they’ve reaped about 50 hours of pain for the two hours of pleasure they may have felt last Friday. Contrarians might see this as reason to take a stand and go opposite the trend. However, I would counsel this approach only for those of you who know how to use ‘camouflage’ to initiate low-risk trades on charts of five-minute degree or less. A big selloff next week seems almost unimaginable in any event, so we’ll plan, simply, on going with the flow. I have DJIA targets all the way up to 21,101, so the next big trade is likely to involve the purchase of DIA call options. Stay tuned to the chat room and my tout updates if you’re interested.

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December 20th, 2016

Posted In: Rick's Picks

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