- the source for market opinions


November 29, 2017 | A FAANG Correction Worthy of the Name?

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.

I’ve allowed a little more leeway than usual for this correction in the lunatic/FAANG stocks.  AMZN in particular was long overdue for a comeuppance. If this is it, we might expect the stock to fall a further 136 points, or 12%, to the green line shown in the chart. More likely is that it won’t get anywhere near that price — will in all probability turn sharply higher, as it always has, when the stock’s canny sponsors throw the switch. If this is in fact the beginning of a more serious shakedown and the stock actually does fall to the green line, it would trip a ‘mechanical’ buy signal there that would be the most opportune we’ve seen in a long while. AMZN would still be ridiculously overpriced at 1025.05 — but hey, who cares about the math?

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

November 29th, 2017

Posted In: Rick's Picks

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.