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November 26, 2019 | A Key Index Faces ‘Moment of Truth’

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.

The New York Composite Index lies within a hair of a trendline that has acted as either support or resistance numerous times since 2017. In this case it is potential resistance and a compelling one at that, just 12 (or so) points from the high achieved Tuesday afternoon. Peter Eliades was the first to call our attention to the trendline, and it has filled us with anticipation since. Drawing a trendline that works predictively is as much art as science, and if it attracts too much attention, that can tend to reduce its effectiveness. There’s no reason why NYA cannot blow past the trendline, but were that to occur we would have to infer that there’s a motherlode of unspent buying power yet to be tapped. There is additional resistance in the form of early 2018’s record high at 13,635. If it too gets shredded by a short-covering stampede, that would put a 15,414 target in play and 14,242 as a minimum objective. One more trading note: If NYA plummets from these levels to 11,896, as scary as that would seem, that’s where we would suggest loading up the truck.

 

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November 26th, 2019

Posted In: Rick's Picks

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