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November 30, 2017 | Here’s How Mr. Market Might Set Up the Kill Shot

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 last thing serious investors should want is for a bull market to become, as this one has…thrilling.  We’re at that threshold now, with the broad averages rising so steeply that even the most bullish story Wall Street can spin conspicuously fails to explain it, let alone justify the hubris. Institutional investors must be starting to wonder how they will exit at these rarefied levels without arousing the suspicion of their money-managing rivals. The best they can hope for is a broad, distributive top.  But even that will take a nasty swoon first in order to create a second wave that everyone will assume is destined to achieve new heights.  That’s how stocks topped in 1929 and 1987, and it doesn’t take a genius to understand the brutal, beautiful  logic of it. Under the circumstances, no matter how high it goes, this is not the rally we should be worried about; rather, it is the next one, following a punitive selloff, that will set up the kill shot for which Mr. Market has always rightfully been feared.

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November 30th, 2017

Posted In: Rick's Picks

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