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September 5, 2017 | Are AAPL and Bitcoin about to Feel the Wrath of ‘Matt’s Curse’?

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.

Two bubble vehicles, among others, got sacked on Tuesday: AAPL shares and the Bitcoin Index. Although odds favor their recouping the losses in the days ahead, that is no reason for bulls not to worry. For in fact, both peaked almost precisely at the ‘secondary’ Hidden Pivot, 25% shy of their respective rally targets. A stall at or very near this pivot is known to Rick’s Picks subscribers as ‘Matt’s Curse’. Although Matt, an avid silver trader, has not made a scientific study of the curse that came to be named after him, he has accumulated sufficient evidence to suggest that a stall at or very near the secondary pivot, which lies midway between a pattern’s midpoint pivot and its ‘D’ target (see inset), tends to prove fatal more often than would occur randomly.  Which is to suggest that it is the most dangerous place for an ABCD-type rally to fail. Moreover, when this occurs, the stock stands a good chance of retreating all the way to the pattern’s point ‘C’ low. If this were to occur in the Bitcoin Index, which is currently trading for around 4413, it would imply more downside to 3879. And if AAPL, currently at 162.03, were to do the same, it would fall to 154.63. Under the circumstances, and given the severity of this scenario, the prospect of ‘Matt’s Curse’  panning out deserves our most utmost attention in the days ahead.

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September 5th, 2017

Posted In: Rick's Picks

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