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November 11, 2018 | Read This If You Don’t Like to Be Fooled or Surprised

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.

The FAANGs barely blipped on Friday, suggesting they will continue to drag the broad averages lower. They fell by nearly 3%, performing much worse than the Dow and S&P 500, which shed, respectively, 0.7% and 1.0%. Expect portfolio managers to continue rotating money between the high-fliers and the stock market’s also-rans, with the goal of sustaining a passable illusion of buoyancy in both. However, next time shares across all sectors move synchronously, be ready for the move to be steeply lower. We should remain open in the meantime to the possibility of sharp, out-of-the-blue rallies like last Wednesday’s post-election show of bravado. It was driven entirely by short-covering that for the time being will remain capable of pushing a relative handful of stocks to new record-highs. AAPL in particular, because it is the most valuable company in the world, can tell us how likely this is to happen. It is an infallible proxy for institutional mindset, along with AMZN, which will be with it each step of the way. These two stocks will keep us confidently on the right side of the trend. If you don’t like to be fooled or surprised, stay tuned them — and to Rick’s Picks .


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November 11th, 2018

Posted In: Rick's Picks

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