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

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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Rick Ackerman June 13th, 2018
Posted In: Rick's Picks