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January 4, 2017 | DJIA Closing on an Important Target

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 impaled a crucial resistance at 19492 with such force on the final trading day of 2016 that they appeared all but certain to achieve a related target at 21,101 that first appeared here several weeks ago. That’s 1159 points above Wednesday’s closing price. At the rate things are going, the target could be achieved by mid-month if not sooner. Even so, I am growing increasingly wary of the Trump rally and continue to monitor the lesser charts for any hint of buyer fatigue. If bulls are getting winded, we should see minor corrections start to reach or exceed their ‘d’ targets. This idea follows from the Hidden Pivot rule that strong trends tend to produce weak retracements — i.e., retracements that do not complete abcd patterns, but instead reverse from somewhere near the midpoint of their c-d legs. In any event, we’ll want to short 21,101 aggressively, albeit with a tight stop-loss, if and when it is reached.

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January 4th, 2017

Posted In: Rick's Picks

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