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June 13, 2018 | End-of-Day Selloff Had a Whiff of 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.

Wednesday’s Fed announcement of another 25-basis-point tightening came exactly as expected, but the stock market took it poorly.  Shares initially swooned, but the session ended with a plunge to new lows that had the smell of fear.  Earlier, I had told subscribers to short the September E-Mini S&Ps if they fell to 2730, about 50 points beneath current levels. The implication was that a print at the price would send the futures yet a further 192 points lower, to 2537.50. But I’ve encouraged them to jump ahead of the trade with a short from current levels, since the broad averages looked ripe for a thwacking. Subscribers should stay tuned to the chat room later tonight and tomorrow morning for further guidance, particularly if a ‘camouflage’ set-up develops that would allow initiating a position with risk very tightly controlled.

 

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June 13th, 2018

Posted In: Rick's Picks

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