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January 30, 2020 | Will They Ever Learn?

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.

Amazon has taken flight in after-hours trading, up $230 at the moment, or about 9%, after earnings announced moments after the close beat analysts’ expectations.  You wonder who the geniuses are who do the expecting, since their estimates so often fall a few crucial pennies shy of whatever numbers are released. Perhaps these shills are paid to lowball their dartboard guesses, since the consequences of guessing wrong can be so lucrative for insiders.  If they are merely dumb, still dumber are traders who bet against after-hours eruptions that have become a staple of the bull market. These short-covering fools are the only source of buying power strong enough to goose stocks past heavy layers of supply. The more bets the fools pile up against the aging bull, the more decisive the stock market’s leaps.  The biggest winners, of course, are those who hold millions of shares in the small handful of companies revered by portfolio managers. The net worth of these zillionaires grows in mere minutes by sums that took a lifetime for robber barons like Carnegie, Astor, Rockefeller and Morgan to accumulate. Rather than treat himself to a good Cuban cigar, Bezos could buy, oh, New Zealand, or Ted Turner, or the Rockettes, to celebrate.

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January 30th, 2020

Posted In: Rick's Picks

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