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January 17, 2018 | The Scent of Dow 30,000

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 bull market’s blowoff-like trajectory has steepened, if such a thing were imaginable, with Wednesday’s 322-point rally in the Dow. The blue chip average is ostensibly headed to the 27,251 target shown, and although this Hidden Pivot resistance is worth shorting, I wouldn’t recommend standing in the herd’s way if it is exceeded by more than 10-15 points. The broad averages reportedly are about to set a record for consecutive days of upwardliness without correcting 5% or more. Statistics aside, it sure feels like it.  The opportunity for buyers to take a breather may be approaching with the nearness of the target flagged above, but we shouldn’t be shocked if it fails to contain their energy. At that point, Dow 30,000 would become all but a foregone conclusion. However, we should keep in mind that, even as the Indoos appear to steam toward a fated rendezvous with an irresistibly round number, ‘foregone conclusions’ are the stuff of bull traps.

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January 17th, 2018

Posted In: Rick's Picks

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