- the source for market opinions


September 30, 2020 | Hard to Get Short, Impossible to Stay that Way

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.

The most bearish thing you could say about the stock market these days is that it has been damn near impossible to short. Perhaps it’s for the better where bears are concerned. The chart above shows how the QQQs, an ETF proxy for the Nasdaq 100, have turned what could have become a bearish head-and-shoulders pattern into a broad, bullish accumulation zone. This is not to say stocks can’t possibly tank, but if they do, few bears will have survived to enjoy the ride. AAPL, the most institutionally beloved stock in the history of the world, has traced out a similar pattern, one that could become a base for a shot at $152 (a Hidden Pivot target). That would represent a 31% move from the current $116. This of course means the broad averages are about to move significantly higher as well, although probably not as steeply as the steroid-fed AAPL.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

September 30th, 2020

Posted In: Rick's Picks

Post a Comment:

Your email address will not be published. Required fields are marked *

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.