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January 27, 2020 | Reaction to Apple’s Earnings Today Holds Key

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.

Buyers hung tough on Monday because DaBoyz were able to exhaust sellers ahead of the opening bell. They won’t be able to rig the game that way on Tuesday, though, since the ‘coronavirus effect’  — on stocks, not humans — is already well in play. Rumors continue to swirl concerning the death toll in China, but it would take a very large pile of bodies to slow Wall Street’s buying orgy for more than a few days. Investable funds are effectively unlimited, implying they will continue to exert irresistible, upward force on stocks. Coronavirus, on the other hand, is hardly an immovable object — just a big news story that continues to mutate.  Absent that very large pile of bodies, however, and for the time being, bulls would seem to hold the edge. That could change at Tuesday’s close, however, with the release of Apple’s earnings. The reaction should give us a good read on the health of the bull market and set the tone for earnings announcements later this week from Boeing, Facebook, Microsoft and Amazon.

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January 27th, 2020

Posted In: Rick's Picks

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