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September 5, 2019 | Is Dow ‘Magnetic Effect’ About to Kick In?

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 have gotten quite a bit of mileage out of a planned meeting in October between trade representatives from the U.S. and China. There are times when the same news would have laid an egg, but this manifestly is not one of them. Cyclical forces are at work, fueling a short squeeze whose bullish impact on stock prices seems exaggerated relative to whatever economic effect a face-saving trade agreement itself is likely to generate. We might have scoffed a month ago at the notion that a bear squeeze could push the broad averages to new all-time highs with the economies of Europe and China sagging so badly. But the Dow Industrial Average is now within 2.5% of a new record — close enough that it will be magnetically drawn toward the old peaks if it finishes the week with a further gain of perhaps 250 points.

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September 5th, 2019

Posted In: Rick's Picks

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