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July 17, 2020 | Market Mania Is Looking a Little Green Around the Gills

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.

 

Stocks have arguably never been more vulnerable than they are now. We need only ponder Tesla’s chart to understand how Wednesday’s highs may have marked a very important top. I’d expected the broad averages to hang tough as the week drew to a close, but their modest bounce on Thursday provided barely enough loft for a modest distribution. DaBoyz will pull out all the stops to keep up appearances on Friday, but however successful the effort, the market will need to fall far enough to test late June’s lows before it is even capable of a sustained rally, never mind psychotic leap.  Friday’s price action will tell us whether bears have grown comfortable with holding short positions over the weekend. My gut feeling is that increasingly grim news concerning the pandemic is about to overtake an absurdly optimistic vaccine story as the focus of investors’ attention. They have gotten so very much so wrong already that it has only been a matter of time before the irresistible force of Fed funny money meets the immovable object of economic reality.

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July 17th, 2020

Posted In: Rick's Picks

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