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August 16, 2018 | Market’s Surge Seems to Be Predicting a Tariff Deal with China

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.

AAPL, the world’s most valuable publicly traded company, came within 50 cents of the 214.30 target I’d drum-rolled here a couple of weeks ago, when the stock was $15 lower. Ordinarily, I’d suggest shorting it at current levels, especially to subscribers who made some bucks enroute to the target. But on second look, I’m convinced the stock will rise at least another 6% before it reaches its full, juicy ripeness as a short. Short-term, this has bullish implications for the stock market, since a monster like AAPL cannot rally 6% without pulling the broad averages higher. It will have help from another bear-baiter, AMZN, which has yet to achieve the 1936.21 target I sent out to subscribers weeks ago. If the Dow rallies correspondingly into the range 27k-28k, it could only be for one reason: China and Trump have struck a bargain on tariffs and trade. Indeed, we should expect this if today’s 400-point rally in the Dow turns out to be the start of a more significant surge.

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August 16th, 2018

Posted In: Rick's Picks

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