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December 13, 2018 | Deaf, Dumb and Blind, Wall Street Keeps Its Cool

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 stock market kept its cool Thursday, demonstrating yet again that traders are deaf, dumb and blind to whatever is going on in the real world. The Dow rose moderately even though the headlines were a full shade darker than usual. Trump was threatening to punish GM for closing an auto plant in Ohio. (He could kill two birds with one stone if he waits for his nemesis Musk to take over the company.) The Saudis were planning a sharp cut in oil exports in order to drive up prices; the U.S. budget deficit hit a record in November; and Pimco raised the odds of a recession over the next 12 months to 30%, a nine-year high. Despite the menacing tone of the news, the Industrial Average eked out a 70-point gain while the S&Ps fell slightly. Let’s hope retailers don’t chime in with a dour yuletide report or we’re liable to see a Santa rally in reverse. Seasonality is strongly in bulls’ favor, but if DaBoyz are unable to seize the advantage on Friday to end this unusually turgid week, Wall Street will face a ponderous overhang of supply come Monday.

 

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December 13th, 2018

Posted In: Rick's Picks

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