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Markets Are Firmly in the Grip of the ‘Dead Zone’


The Dow Industrials recouped about a third of their rather significant losses before the bell — all within what we must acknowledge as a 2000-point ‘comfort zone’ ranging from around 23,000 to 25,000. The swings could become mind-numbing even if gurus continue to predict, as is their wont, that ‘something’ is about to happen. But if you follow the seasonal adage — i.e., investors should sell and go away in May — it may be time to prepare for one of the dullest off-season performances ever.  In his latest edition of Crosscurrents, my friend and colleague Alan M. Newman notes the following:

“We coined the term ‘Dead Zone’ probably 25 years ago, to describe the stock market’s obvious seasonal patterns. The ideas first offered up by Yale Hirsch and Norman Fosbach were too interesting to ignore. Simply put, for almost seven decades, there have been two very distinct seasonal periods – one good and one awful. Going back to 1950, $10,000 invested in the Dow Industrials for only the periods from the end of October through the end of April would now be worth $985,511.77. On the other hand, $10,000 invested for only the period from the end of April through the end of October would now be worth only $11,092.68.

“In other words, 98.9% of a passive investor’s portfolio would stem from the favorable seasonality. This stark comparison led to the old adage, ‘sell in May and go away,’ and for the most part, this has functioned as sage advice.”

A final, sobering note from Alan:  The Dead Zone’s grip appears to have widened since it was first described, extending beyond October into…. December. If so, the patience of investors is about to be tested to the utmost.

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Tuesday, August 20, 2019

The consistent accuracy of Rick Ackerman’s forecasts is well known in the trading world, where his Hidden Pivot Method has achieved cult status. Rick’s proprietary trading/forecasting system is easy to learn, probably because he majored in English, not rocket science. Just one simple but powerful trick -- managing the risk of an ongoing trade with stop-losses based on ‘impulse legs’ – can be grasped in three minutes and put to profitable use immediately. Quite a few of his students will tell you that using ‘impulsive stops’ has paid for the course many times over.

Another secret Rick will share with you, “camouflage trading,” takes more time to master, but once you get the hang of it trading will never be the same. The technique entails identifying ultra-low-risk trade set-ups on, say, the one-minute bar chart, and then initiating trades in places where competition tends to be thin.

Most important of all, Rick will teach you how to develop market instincts (aka “horse sense”) by observing the markets each day from the fixed vantage point that only a rigorously disciplined trading system can provide.

The three-hour Hidden Pivot Course is offered live each month. If it’s more convenient, you can take it in recorded form at your leisure, as many times as you like. The course fee includes “live” trading sessions (as opposed to hypothetical ‘chalk-talk’) every Wednesday morning, access to hundreds of recorded hours of tutorial sessions, and access to an online library that will help you achieve black-belt mastery of Hidden Pivot trading techniques.

The next webinar will be held on Tuesday, August 20. Click below to register or get more information.

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