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July 24, 2018 | Gap Growing Between Indoos and S&Ps

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.

Although the S&Ps are breaking out (see E-Mini analysis below), the Dow Industrials lag well behind. The former have already pushed above late February’s key peak, generating a powerful impulse leg on the daily chart. However, for the Indoos to accomplish this they’d need to rally more than 500 points, exceeding 25,800. If the two continue to diverge, something’s got to give. I’m betting that the lunatic-powered FAANG stocks, which have an outsize effect on the S&Ps, will be hard-pressed to drag the Dow much higher, since the blue chip average represents America’s relatively unexciting industrial sector.  We shall see.

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July 24th, 2018

Posted In: Rick's Picks

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