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July 21, 2020 | Is a Major Tone Change Imminent?

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.

Some interesting things are happening in the markets that could augur an important tone change. For one, the frothing-at-the-mouth idiots who have been pushing Tesla shares into the ionosphere went quiet just a day ahead of earnings. Ordinarily that would be no big deal, but in this case it reflects timidity that has been absent from the stock’s absurd rise since March. For two, gold is breaking out and giving up little ground achieved early in the session. We’d gotten so used to one-day-wonder rallies over the last nine years that a little staying power, even intraday, seems shocking. For three, price action in silver is beginning to heat up, suggesting speculative fervor is creeping into the bullion market. And finally, the dollar is approaching a correction threshold that I’d projected months ago. My hunch is that these things together augur a potential major tone change for securities markets, and by extension, for the already beleaguered global economy.

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July 21st, 2020

Posted In: Rick's Picks

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