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January 7, 2018 | Exuberance — or Fever?

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.

2018 has begun with a powerful rally on Wall Street that is either entirely rational or cravenous, depending on one’s point of view. The best explanation I’ve heard so far views the rampaging bull as politically rational but economically insane. I shouldn’t need to explain the latter point of view, but Trump seems to be getting much of the credit for the former, since he arguably represents a shift from the most anti-business U.S. President in recent history to the most pro-business. Even so, with earnings multiples for many high fliers in triple digits, valuations are just a little, shall we say, “rich”. However skeptical we might be, we shouldn’t let it inhibit our bullish imagination. By my runes, technically speaking, there’s still room for more…call it exuberance. You might therefore find my latest bull-market target for the Dow Industrials interesting, especially since it’s closer than you might imagine. If you don’t subscribe but want a peek at it, click here for a free two-week trial subscription to Rick’s Picks. It’ll get you into the 24/7 chat room as well, where great traders from around the world gather to swap ideas in real time, wise anecdotes, war stories and witticisms.

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January 7th, 2018

Posted In: Rick's Picks

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