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June 17, 2018 | NFLX Leaps, but AAPL and Others Fail to Follow

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.

With the exception of AAPL, which has been getting lousy press lately, the FAANG stocks were positioned to hit ‘Hidden Pivot’ rally targets last week; only NFLX succeeded. This will have mildly bearish implications as the week begins, since the short squeeze that energized NFLX was very much a Friday kinda thing. Factor in rising oil prices and a strong dollar, and DaBoyz will have their work cut out for them if they want to take the broad averages higher. This is notwithstanding the fact that there are only a relative handful of stocks that need to be goosed to sustain the illusion of a bull market. Concerning Apple, the unthinkable seems to have occurred. There were actual concerns that using high-end screens for their latest iPhone would price it beyond the reach of too many customers. This is definitely a man-bites-dog story, since at no time in the past has Apple’s cult of buyers balked at paying a steep price for relatively small gains in technology. AAPL’s daily chart appears to be rolling down (see inset), but we won’t count out bulls quite yet, since the shares are a must-own for the investment world’s leviathans. They don’t change their game plan often, and so any weakness in AAPL should be viewed with skepticism.

 

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June 17th, 2018

Posted In: Rick's Picks

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