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June 10, 2020 | Good News and Even Bad News Fail to Lift Market

Rick Ackerman

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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.

Nothing like a little good news to stop the stock market’s rally dead in its tracks. Powell announced that nearly-free money would remain available to big borrowers in more or less unlimited quantities until 2023. The Dow Industrials dropped nearly 300 points on the news, like a six-year-old having a snit when his sundae arrives without a cherry on top. Perhaps this latest gift from the central bank struck investors as a tad stingy?  Compared to Europe, where they’re not only giving away money but slapping lenders who don’t with a surcharge, perhaps our guys have a point.

One might have hoped that grim pandemic news out Wednesday might have balanced out the negative reaction to the stimulus news. The pandemic reportedly is resurgent in the U.S., most particularly in Texas, where a record 2504 new coronavirus cases were reported in a single day.  Investors have routinely sent stocks higher on news like that, or at least marked time for a day or two. Alas, the heartless bastards showed no exuberance whatsoever. Are times so tough that bad news is treated like..bad news on Wall Street?

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June 10th, 2020

Posted In: Rick's Picks

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