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March 27, 2018 | An Easy Way to Stay in Rhythm with the Stock Market

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.


Old-time slot machines could be gamed to pay off more frequently than usual by using a technique called “rhythming.” As described by gambling legend John Scarne, it entailed playing two slot machines simultaneously. We’re doing something similar by “rhythming” AMZN’s ups and downs alongside price action in the broad averages. The result is a system that has been remarkably accurate in predicting key turning points. Check out the AMZN tout below to see how well it worked on Tuesday, when the stock sold off $94 after coming within 66 cents of a crystal-clear Hidden Pivot target e-mailed to subscribers the night before. AMZN has turned out to be the most important stock in fund managers’ portfolios, continuing upward even when some other must-own shares — notably Boeing and Apple — have begun to falter.  Now, watching AMZN alone, we can be confident the broad averages will hold up as long as the stock is buoyant. Conversely, on days like Tuesday, when Amazon shares are dropping like a cinder block, we can safely assume that broad averages will plummet as well, ending the day near their lows.



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March 27th, 2018

Posted In: Rick's Picks

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