- the source for market opinions


January 21, 2019 | This Rally Is Designed for Sustainability

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.

Index futures were being primed Monday night for a resumption of last week’s moderate uptrend. It was built for sustainability rather than speed, and that’s why those of us who have been hating everything about the stock market lately should be careful not to underestimate its potential. Its devious sponsors are clever, to put it mildly, and they have been very cautious about letting the short-covering bears who are driving it get too far ahead of themselves. My 2728 target for the E-mini S&Ps lies about 70 points above, implying a further Dow rally of perhaps 600-700 points is coming.

Concerning why we distrust this rally no matter how high it goes, here’s yet one more reason, from the latest edition of The Wall Street Journal: “Investors are increasing their cash holdings at the fastest pace in a decade, highlighting doubts about the durability of the stock market’s rebound in the first weeks of this year.”

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

January 21st, 2019

Posted In: Rick's Picks

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.