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May 26, 2020 | All Heaven Breaks Loose to Start the Week

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.

All heaven broke loose ahead of Tuesday’s opening, starting with a gusher of headlines suggesting the worst is behind us. The Wall Street Journal led with a story about how trucking activity has picked up, and even the hotels and cruise lines are stirring. The pick-up in tempo is slight so far, as the Journal was forced to concede, but sufficient nonetheless for the editors to stuff a hat trick’s worth of subliminally bullish data into stories played above the fold.  Elsewhere on the page, in the wrap-up briefs, it was alleged that air travel is creeping back to life, although almost no one you or I know is even thinking about flying for the next few months. Rounding out the Journal’s v-shaped-recovery lollapalooza was an item about mortgage activity picking up, although there was no mention that most of it involves re-fi’s.

Such is the news in a time of cholera, and in fairness to the Journal, its rosy perception of the things is merely following the lunatic trajectory of the stock market.  Rick’s Picks remains very bullish in nearly any event, despite all the fake news and ‘re-opening hubris’. We’ve been forecasting a nearly 2000-point rally in the Dow, albeit with one foot on the fire escape.  Short-covering will remain the name of the game for the time being, turbocharged by Fed purchases of corporate bonds as well as Treasury paper held by companies with surplus cash.

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May 26th, 2020

Posted In: Rick's Picks

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