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October 30, 2018 | ‘Markets Move After Everyone Has Given Up’

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.

Is it safe to go back in the water? Merely asking that question is to suggest that only an imbecile would dive fearlessly back in the drink. Even so, there are most surely enough imbeciles to keep stocks buoyant in the days or even weeks ahead. If they eventually are joined by panic-stricken bears as sometimes happens, we could see a rally capable of persuading otherwise sane folks on the sidelines that new record highs await. ‘Trader Mike’ caught a fascinating aspect of the game in the chat room today with this wry observation concerning market psychology:  “Markets require people to give up. Read the Turtle book. The Turtles got their brains bashed out trading coffee, then they decided to stop trading coffee, then it produced the largest single trade in the history of mankind. That’s how it works. I exaggerated a little. I’m sure Bitcoin is the largest trade ever, but you get the idea.”

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October 30th, 2018

Posted In: Rick's Picks

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