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November 14, 2018 | Using AAPL to Precisely Time the Stock Market’s Big Swings

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.

I argue below for monitoring AAPL’s price swings obsessively, since the stock will give us an infallible ‘read’ on the stock market as a whole. On Wednesday, for instance, when AAPL began its bounce precisely from a 185.87 downside target I’d billboarded two nights earlier, the broad averages whipped around 180 degrees and took off like a shot. It was exactly 2:07 p.m. ET, and the Dow was banging out its intraday low at 24935, down 350 points.  The subsequent upthrust hit 25263, at which point the Dow was within 25 points of unchanged. The blue chip average relapsed in the final hour, presumably because its guiding light, AAPL, was unable to sustain altitude. I’ve provided benchmarks for AAPL for Thursday that will allow you to see for yourself how the stock’s targeted highs and lows can be used to precisely time price swings in the broad averages. For the foreseeable future, AAPL will be leading them by the nose.

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November 14th, 2018

Posted In: Rick's Picks

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