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February 8, 2018 | What It Would Take to Exhaust Sellers

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.

Thursday’s carnage will not likely be the end of it, unfortunately. The S&Ps and the Industrial Average both demolished key supports in the final hour, all but guaranteeing more selling in the day(s) ahead. In my tout for each (see below), I’ve provided precise benchmarks so that you can gauge not only the strength of the selling, but the likelihood that it will continue. Generally speaking, when a Hidden Pivot support is decisively breached, it implies that the next, usually of higher degree, will be reached.  The good news is that a further 1100-point drop in the Dow, to around 22734, would probably exhaust sellers and provide the sort of climactic low on which a solid base for the next rally could be built.

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February 8th, 2018

Posted In: Rick's Picks

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