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May 8, 2018 | 2.89-Point Dow Rally Was No Small Feat

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.

Give DaBoyz credit for levitating the Dow by 2.89 points on Tuesday. That may seem like a pittance, but it was actually quite a feat for them to eke out a small gain with the price of crude head-butting the psychologically crucial $70 level. Although there is room to disagree about how much higher oil prices might go this time around, no one doubts that anything above $70 is going to put a serious drag on the U.S. economy.  Trump’s decision to jettison the nuclear deal with Iran could add 15 to 25 cents a gallon at the pump, the news media are telling us. Don’t these guys ever learn?  Merely talking about a 25-cent increase in the weeks ahead all but guarantees it will happen more or less overnight. A 75-cent hike by mid-June sounds more like it.  If so, don’t be surprised if the Dow is trading 2000 points lower than the current 24,360.

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May 8th, 2018

Posted In: Rick's Picks

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