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April 24, 2020 | A Boring Day, but Why?

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.

A wasteful, do-nothing day on Wall Street. The tedium is hard to fathom, considering how interesting these times are. The broad averages rose steeply in the first 90 minutes, then spent the remainder of the session giving it all back, although no more. For traders, the tedium could set up a test of whether it is better at the moment to view the glass as half-empty or half-full. Someone in the chat room said the day’s price action described a ‘flat abc’, an Elliott Wave term. This supposedly signifies a ‘wild-card’ day:  pick ’em and take your chances. Candlestick chartists use ‘doji’ formations to draw similar inferences.  For my part, I held no position at the bell and will be content to spectate when stocks open Friday morning. My gut feeling is that the gratuitous hump traced out by stocks on Thursday was just that: gratuitous. I still have outstanding rally targets for the S&Ps and AAPL, our favorite bellwether, that lie significantly higher. I could never be so certain of them, however, that I would take a position home over the weekend.

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April 24th, 2020

Posted In: Rick's Picks

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