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September 2, 2020 | Reasons for Holiday Jitters

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.

Seasonality will be heavily on bulls’ side ahead of Labor Day weekend, but stocks will be bucking powerful headwinds thereafter, since September is historically Wall Street’s worst month. This September will be particularly interesting if two fledgling trends gain momentum. Specifically, the dollar has turned up from a promising spot, and AAPL for a rare change closed lower on the day. The psychotic spasms that undercut Apple shares apparently were caused by news that euroland’s regulators are taking a close look at the company’s app store. Investors have reason to be fearful, since it is a monopoly business that makes Microsoft’s criminal lockhold on web browsers 25 years ago look like pattycakes.

The dog-bites-man story of the day was the oh-so-sly rotation of money into the Indoos and the S&Ps. With AAPL getting hit, DaBoyz took OPM ordinarily earmarked for the FAANG/lunatic sector and pumped it into the broad averages. Another day or two of this and the parabolic blowoff that has seized the Nasdaq 100 will infuse itself into the Dow Average and the S&P 500.

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September 2nd, 2020

Posted In: Rick's Picks

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