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December 19, 2019 | Boredom Could Stoke a Friday Rally

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 stock market’s week has been so tedious, even with an impeachment, that we shouldn’t be surprised if something happens to cause traders to emerge from their coma. A compelling trendline that I’ve mentioned here before implies the surprise would likely be to the upside, since the Dow Industrials would need to rise 500 points to reach it. The actual number is 28,692, and wouldn’t that be a shocker! Most unexpected of all would be for this to happen following a slow start. If the opening looks weak, as in ‘stage-managed’, don’t be afraid to take a small speculative stake in some cheap out-of-the-money calls in the FAANGs, TSLA, MMM or MSFT.

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December 19th, 2019

Posted In: Rick's Picks

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