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September 1, 2019 | Bipolar Stock Market Obsessed with Trade Tweets

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.

DaBoyz milked the impending trade deal for all it was worth last week, squeezing shorts relentlessly until they evidently exhausted themselves on Friday before dawn. I can’t recall a more enticing instance of ‘buy the rumor, sell the news’. The trouble is, both rumor and news have exhibited manic bipolarity on a weekly basis, to the point where the usual idiots who have fixated on Trump’s tweets and nothing else have turned the stock market even more psychotic than usual.

In any event, there is little reason to doubt that the ratcheting short squeeze begun a week ago will sputter out somewhere shy of July’s highs, since the U.S. economy, if not yet the widespread perception of it, is moving toward a recessionary tipping point. An opportunity to leverage an autumn crash would appear to be nigh, even if Mr. Market is not making it easy for us. The mere fact that it looks like such a juicy bet implies that an unpleasant surprise may still lie ahead for righteous bears.

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September 1st, 2019

Posted In: Rick's Picks

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