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June 17, 2019 | Stocks Go Comatose Ahead of ‘Big’ News from Fed

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.

If things weren’t slow enough already on Wall Street due to summer doldrums before summer has even begun, the announcement coming Wednesday from the Fed has made stocks go comatose ahead of the “news”. Expect Monday’s dirge to continue until the Big Event at 2:00 p.m. EDT. Powell & Co. have been in such a dither lately that anything he says will be greeted with surprise.  We won’t hazard a guess as to which direction stocks will move.

Although everyone knows the central bank determines when to ease or tighten based on what the stock market is doing, the pretense of using sophisticated tools to shape monetary policy is a silly game with rules that investors dare not flout. The first is “Don’t fight the Fed.” It is at times like this, however, that monetary policy is so muddled and convoluted that it’s difficult for investors to know whether or not they’re in harmony with monetary policy. Sit back, enjoy the show, have few laughs as the alchemists do their stupid thing, and you won’t be far out-of-sync.

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June 17th, 2019

Posted In: Rick's Picks

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