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January 14, 2019 | Why a Deal with China Could Land with a Thud

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.

Five straight days of tedium have sapped my enthusiasm for telling you that something worthy of a headline is about to happen on Wall Street. However, the latest update for AMZN (see below) implies that if DaBoyz cannot levitate the stock within the next day or two, they’ll have to take it down by a hundred or so points to a level where it can be supported with less effort. Short-covering is the only source of significant buying power in this distribution phase of an adolescent bear market, but it takes ostensibly bullish ‘news’ to cause this to happen.

In the meantime, we are all waiting for the momentous announcement of a deal with China, but the longer it is delayed (assuming it happens at all), the greater the possibility that it will land with a thud. No one really expects a true trading breakthrough, only a nominal agreement to play fair that would have little immediate impact on trade. Moreover, any positive effect it might have could prove to be too little, too late, especially with the economies of China and Europe already in a downturn.

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January 14th, 2019

Posted In: Rick's Picks

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