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December 9, 2017 | Wall Street Ponzi Scheme’s Biggest Challenge

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.

Although the Masters of the Universe have shown themselves to be adept at rotating money from one sector to the next in order to keep Wall Street’s Ponzi scheme going…forever, they will need to commit huge new sums to the FAANG stocks to maintain the bull market’s credibility. Shares of world-beaters such as Amazon, Apple, Google and Netflix have languished for weeks, putting a drag on the Dow Industrials that eventually will turn lethal to the aging bull if FAANG shares stop achieving new record highs with awe-inspiring regularity. My guess is that Facebook and GOOGL are about to lead the charge, since their ability to monetize eyeballs will always be reckoned by investors as an easier path to profits than selling actual things, as Amazon, Tesla and Microsoft must. In any case, hoisting some of the biggest-cap stocks in the world even an inch at a time will require larger and larger infusions of cash.  Succeeding at this game will become far more difficult if the Fed continues to tighten, even if they are just bluffing. If traders haven’t factored this into their thinking yet, it is time they did so.

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December 9th, 2017

Posted In: Rick's Picks

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