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June 13, 2017 | A Precise Benchmark for Nasdaq Bulls (and Bears)

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 FAANG/lunatic stocks have recouped about 40% of last Friday’s mini-crash with two consecutive days of short-squeeze buying. The gains have been relatively modest so far, but this is because bears don’t yet perceive the rally as threatening. That’s exactly the sort of thinking that can cause a weak short-squeeze to gain momentum and turn powerful after a few days. In this case, however, there is probably too much distance between current levels and the recent, record highs to get bears to stampede as early as this week. Accordingly, I expect the high-flyers to roll over, but not in a way that will let shorts get comfortable growing their position size. The foregoing aside, if QQQ can close for two consecutive days above the 141.14 midpoint Hidden Pivot shown in the chart, all bearish bets will be off.

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June 13th, 2017

Posted In: Rick's Picks

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