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January 18, 2018 | Big Selloff Is Surely Coming ‘Soon’

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.

Stocks have been in an all-out sprint since the first trading day of the new year and are overdue for a correction. Whether frenzied buyers are ready to oblige, if only to preserve their health, should become clearer as the week draws to a close. They looked winded on Thursday but still managed to close the broad averages off their intraday lows. If the Dow were to close unchanged or down slightly on Friday, especially after trading underwater intraday, I’d expect next week to begin on weakness, accelerating into mid-week or beyond. We’ve become so accustomed to seeing every dip get bought with such vigor that we can be certain stocks will fall with unusual steepness the first time bargain hunters are perceived as spent. Any guru predicting this will happen “soon” is not going very far out on a limb.

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January 18th, 2018

Posted In: Rick's Picks

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