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June 11, 2020 | Market’s Ups and Downs, Not the Pandemic, Drive America’s Moods

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.

Reporters and their editors have been getting whipped around by the stock market, since the market drives the news, not the other way around. That’s why we were battered senseless with ridiculously optimistic headlines about the increasing likelihood of a v-shaped economic recovery. Lo, stocks have fallen hard for just one day, and the sunny stories have moved off the front page to make room for news about about a supposedly resurgent pandemic.  Wall Street had no trouble shrugging off the resurgence when it surfaced statistically perhaps a week ago, but now the same story, with a few more deaths, inspires only fear.

Every news outlet in the country that covers the stock market attributed today’s sharp drop to renewed Covid-19 fears. All of them are flat-out wrong. Stocks turned lower simply because the most important stock of all, Apple, hit an important Hidden Pivot rally target at 354.47 that had been disseminated to Rick’s Picks subscribers last week with the stock trading $30 lower. AAPL, the most influential stock in the world, was due for a turn regardless of what the coronavirus was doing. Stories about the deepening recession and the spread of Covid-19 will continue to track the stock market’s cyclical ups and downs, which, more than the spread of the disease itself, determine the mood of America.

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June 11th, 2020

Posted In: Rick's Picks

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