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June 25, 2020 | Buy the Dips and You Can’t Lose, Right?

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.

If you thought the resurgence of Covid-19 in the U.S. would put a damper on Wall Street’s orgy, you’d have been wrong. Stocks continued their heedless ascent on Thursday even though the pandemic is close to extinguishing a fragile economic recovery that had barely gotten off the ground. The Dow rose 300 points, demonstrating yet again that champions of the V-shaped recovery still hold sway in the markets.  Two consecutive down days seems to be as bad as it gets any more, regardless of the headlines.  This observation in itself is reason for extra caution, since it implies that we’ve all gotten a little too used to buying the dip on day three. One of these times, probably soon, that dip is going to turn into an avalanche that will last for weeks.

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June 25th, 2020

Posted In: Rick's Picks

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