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April 2, 2018 | Will Pathetic Little Bounce Turn Savage?

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.

The Dow was down nearly 800 points before buyers finally got traction and turned things around. The 300-point rally that ensued was so crappy looking that we can only assume it’s going to continue. Perhaps I’m just another permabear all too eager to play the contrarian, especially since the stock market has not gone our way for more than a few consecutive days in more than nine years.  Maybe this time?  In any event, it is a long climb from here (to 24,978, to be exact) before even the hourly chart turns impulsively bullish, so we’ll simply bide our time until Mr. Market shows us another hole card. Meanwhile, notice in the chart that the Indoos reversed almost precisely from the pattern’s secondary pivot (shown as a pink line at 23,358). This is mildly bullish — enough so that we should remain open-minded to the possibility that a crappy rally will fool shorts right up until the moment they panic.

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April 2nd, 2018

Posted In: Rick's Picks

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