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February 5, 2018 | Selling Climax Needed to Inspire Real Fear

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.

Index futures were getting savaged late Monday night as DaBoyz worked feverishly to exhaust sellers so that They can run stocks up the ol’ wazoo ahead of the opening bell.  This is a dangerous game, even for the thimble riggers who control America’s securities exchanges. I’d flagged the 2533.50 downside target shown (click thumbnail inset) for the E-Mini S&Ps less than an hour ago, when it looked like it would take the whole night to get there. If it has been exceeded by the time you read this, shift your sights downward to 2499.25, and thence to 2467.50. As always, the more easily each successive Hidden Pivot target gives way, the more likely the next is to be reached. is this is the start of the Big One? Speaking as an inveterate permabear, my answer is no. I believe the selloff is merely corrective but that it won’t end until permabulls start showing signs of real fear. This has yet to occur as far as I can surmise, and it could conceivably take climactic selling far nastier than what has  occurred thus far to bring them around.

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February 5th, 2018

Posted In: Rick's Picks

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