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January 30, 2018 | Plummeting Stocks Provide a Long Overdue Breath of Fresh Air

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.

Tuesday’s nearly 400-point decline in the Dow Industrials was a long overdue breath of fresh air. We shouldn’t assume it is the death knell for the nine-year-old bull market, however, since money managers with their economic lives at stake need only buy a handful of stocks in concert to turn things around. Even so, we’ll be paying particular attention to the shares of home builders (see TOL tout below), since they are less prone to be driven by bulls**t and hubris than such Wall Street faves as TSLA, NFLX, GOOG, MSFT, FB and AAPL.  Meanwhile, the Dow Industrials have fallen 589 points, or 2.2%, since peaking on Friday at record levels. They would need to fall a farther 432 points, touching 25,256, to announce that something might be seriously wrong.

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January 30th, 2018

Posted In: Rick's Picks

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