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August 28, 2017 | Traders Pretend to Panic as Kim’s Missile Streaks Over Japan

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.

North Korea’s whack-job dictator has reportedly lobbed a missile over Japan, causing index futures to plunge Monday evening. So far, DaBoyz are acting almost as crazy as Mr. Kim, treating this unprecedented act of aggression as a buying opportunity. They’ve pulled their bids, allowing stocks to fall steeply enough to discount any outcome short of Armageddon, and now they are actually effecting a bounce to unload shares they bought on the news. Kim Jong Un-sane will get much of the credit if it turns out that a bear market has begun.  But this is not how the stock market works. As long as the delusion persists that Wall Street fears North Korea, stocks will remain vulnerable to a sigh-of-relief rally when Kim backs off. That’s how bull traps are set, and it is what I’d suggest that you look for.

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August 28th, 2017

Posted In: Rick's Picks

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