Howestreet.com - the source for market opinions

ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

November 19, 2019 | Precise DIA Rally Target Made Shorting a Breeze

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.

 

Regardless of whether today’s high turns out to be the mythical Mother of All Tops, it was easy money for anyone who initiated a short position in DIA as I’d suggested.  Weeks ago, Rick’s Picks spotlighted what stood to be an important Hidden Pivot rally target at 280.88. When it was missed by just 0.04 points at today’s high, DIA subsequently dove to 278.78, equivalent to 200 Dow points, causing near-the-money put options to at least double in price in mere hours. The DIA rally target was offered as an alternative to one at 2128.50 in the E-Mini S&Ps, since not all subscribers trade futures. The latter had already produced gains of as much as $800 per contract on Monday for subscribers who reported taking a position. This could still turn out to be a major top, but even if the highs are marginally exceeded this week, I doubt the broad averages can go much higher.  A nasty correction is long overdue, and this is a logical place for one to begin

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the HoweStreet.com Weekly Recap.

November 19th, 2019

Posted In: Rick's Picks

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site

*
*

This site uses Akismet to reduce spam. Learn how your comment data is processed.