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August 26, 2018 | A Burst of Exuberance Is Coming

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.

My latest update for the E-Mini S&Ps calls for a move shortly to new all-time highs, with a corresponding 800-point rally in the Dow Industrials that would fall just shy of a record. This burst of exuberance may seem all but inevitable now, but there were reasons to doubt that it would occur when a global tariff war threatened to erupt a few months ago. The threat has since receded, and it now appears that China will follow Europe’s constructive lead in reconciling trade differences with the U.S. Looking at a longer-term picture, a move away from tariffs globally — which is what Trump evidently intends — would support much higher prices for equity shares, even in a Europe that has grown dangerously dependent on Germany’s economic strength to carry the day.

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August 26th, 2018

Posted In: Rick's Picks

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