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July 26, 2018 | FAANG ‘Leadership’ Takes a Body Blow

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.

I’ve renewed my focus on AMZN as a crucial bellwether for the bull market, since the retailer’s shares seem likely to remain feisty up until the moment their rabid sponsors keel over dead from exhaustion. The stock was on course to end the week in a downtrend. It’s been a month since that occurred, and although the selloff was quickly recouped, it might be different this time because of the huge hit that Netflix and Facebook shares took recently on earnings disappointments.  Without the fearless (if not to say heedless) leadership of the lunatic-powered FAANG stocks, the broad averages are unlikely to make significant headway, even if the Dow Industrials are still able to eke out a gain. This can go on for a short while simply because portfolio-managing chimpanzees have to do something with all that money. However, we shouldn’t count too heavily on America’s industrial sector to make up in animal spirits what the FAANGs have lost.

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July 26th, 2018

Posted In: Rick's Picks

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