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Today's chart shows why it can be so difficult to make money in a bull market, even when one "knows" how high a stock is headed.  We've been confident that Facebook (click on inset) will eventually hit 190, a Hidden Pivot target first aired here more than three weeks ago when the stock was trading around 167.  We still think it'll get there, come hell or high water. But what an agony it has been to simply go with the flow! As the chart shows, the stock has made a series of marginal new highs, each followed by a relatively stiff pullback. If you'd been long the stock at April 3's 177.96 peak, you'd have needed to weather a $5 swing against you just to net a four-cent gain at the next peak.  The 179.19 peak that  followed that one, making you $119 richer on 100 shares, required sitting tight on a dive that at its low would have made you $373 poorer. Rewarding the Faithful Although Rick's Picks tries to keep risk/reward in a 1:3 ratio at all times, a buy-and hold strategy in Facebook, as you can see, subjects one to an effective risk:reward greater than 3:1. Risking $3 to make $1 is no way for a trader to make a living. Tesla shares, incidentally, come out far worse on the risk:reward scale. If you'd held a single share from the September 2017 record high at 389, you're out $118 at the moment and would need a 43% rally just to break even. Ultimately, it is only the enduringly faithful -- in this case, institutional geniuses who have held just a handful of one-decision FAANG stocks for years -- who can withstand such horrendous short-term odds.

The stock market's masters have zeroed in on a few stocks to help foster the illusion that the aging bull is in excellent health. If you've been watching the shares of Boeing, AAPL and Tesla in particular you could get the impression buyers are unstoppable.  With cyclical forces powerfully supporting the uptrend at the moment, the Masters of the Universe are training much of their firepower on hard cases that have gotten bad publicity in recent months. Any gains in these stocks is effectively being banked against their next downturn, when investors will shed their amnesia and suddenly remember all of the bad news. If there is evidence the buying spree is near an end, however, it can be found most easily in the chart of VXXB, an S&P volatility index that is close to an important downside target at 24.50. If there's a sharp bounce from that number as we should expect, then an important top in the stock market is close.

Lyft is all but guaranteed to fall a further 5% to the 53.60 target shown if Hidden Pivot analysis has got it right. A telltale sign that more weakness was coming was the way sellers sliced through the 64.85 'midpoint support' last week. Scalpers can bottom-fish with a 53.62 bid, stop 53.54. Although there is not much price history on the stock, the pattern is still clear, clean and compelling, implying odds are good for a bounce from very near 53.60. The extent of it is unpredictable, but I would expect the stock eventually to continue down into the teens, since the company is unlikely in my opinion to make money. Ditto for Uber, which is hoping to go public at a $100 billion valuation equating to roughly $95/share. However, it seems probable that LYFT's discouraging performance will keep a lid on the Uber IPO.  If the stock performs similarly to LYFT, falling in the first week or two by 39.5%, that would yield a share price of 57.47.  You read it here first. ______ UPDATE (Apr 29, 11:23 p.m.): This dog has fallen a further 11% to a so-far low at 54.32 that missed my target by 0.72, or 1.3%. As a practical matter, shorts should have been covered with a 'dynamic' trailing stop at 54.56. The target remains theoretically viable, but all rallies in the years ahead should be treated as dead-cat bounces, since the company is unlikely to turn an honest profit.

When the S&Ps took a bold leap on December 26 after plummeting 500 points earlier in the month, few could have imagined what would happen next. It were as though, missing an arm and a leg, a soldier had vaulted from a trench in the heat of the Battle of the Somme and shouted "Vive la France!" In the movie, the soldier is dead before he stumbles and hits the ground. But on Wall Street, U.S. stocks were just beginning their most powerful rally ever. The S&P 500 Index has risen 600 points and is closing fast on the record 2941 recorded in September. The wilding spree has been duplicated in stock exchanges around the world even though global growth is slowing. This shows the irresistible power of central bank stimulus, but also the irrationality of the result. Something's got to give, and it seems unlikely that the necessary  adjustment will come via a huge surge in corporate earnings. Even so, easy credit, aggressive share buybacks and force of habit will continue to fuel stocks until the money runs out. Since no one can say any longer what, exactly, counts as money, it is impossible to estimate when this will occur. The charts are also silent on the question of how high. But gut instinct says we are close to an important top, even if ten years from now it turns out not to have been THE Top.

A longstanding rally target at 2929.00 has served  us well, keeping us confidently on the right side of the trend. It now looks extremely likely to be reached, but the question is whether it will be decisively exceeded. I expect the Hidden Pivot to show stopping power, probably tradeably so, but I would recommend going short there only if you have made at least 3-4 points of profit on the way up.  You'll need all of it to provide an ample stop-loss on entry. I say this because the C-D rally leg begun on March 25 provided no opportunities to get long 'mechanically'. This attests to the power of the move, and it raises the odds of a thrust to even higher levels regardless of whether a correction is needed first to get a running start. Even a slight breach of 2929.00 would make a run-up to new record highs all but inevitable. That would not negate my skepticism that the powerful move begun on December 26 has been a bear rally. Too many agree with this judgment, however, to make a move to new highs an easy short.

Investors have thrown caution to the wind as they bid up FAANG stocks to imprudent heights and provide overly generous bids for a few others that face serious jeopardy, including Tesla and Boeing. Even so, the herd evidently had second thoughts about one stock on Friday, pummeling the shares of Netflix when competitor Disney announced a new streaming service that will be bargain priced at $6.99 a month.  Apple was another story, however. After getting hit early in the session, the stock actually closed higher despite the fact that the company will soon be competing with Disney, Netflix and others in the well-saturated entertainment sector. AAPL (click on chart inset) is arguably the most overpriced of the bunch, since the shares had already undergone a ballistic rejuvenation weeks ago after the company announced it would produce and stream movies and TV shows. Investors who have bid up Apple stock 42% since January are betting the company will be able to offset weakening iPhone sales with such fare, but this is unrealistic, to put it mildly. There are already far too many deep-pocketed players in the game, producing many more shows than any of us has the time or interest to watch. And even if Apple were to create TV good enough to steal viewers from Netflix, Disney et al., profit margins would not come close to what they’ve been from selling pricey mobile phones to iCult buyers. Lotus-Eaters Love Uber Uber is another company that lotus-eating investors and the supposedly smart money have got all wrong. Although Wall Street recently lowered its sights by 16%, to $100 billion, for the upcoming IPO, this is still an insane valuation for a business that may never turn a profit. A Wall Street Journal story published last week suggested the dimensions of the

Shares of Apple and Amazon have stalled, implying that institutional sponsors of these two very important stocks may need a rest before they can lead the next charge higher. 'Freaky' Friday would be a good day to take such a crazy leap, except that the broad averages looked too punk on Thursday to deliver one. Moreover, Boeing, which will be driving the Dow's ups and downs for a while,  may have gotten as much mileage as it's going to get from a well-spun news story about how the company will seek the approval of some of its biggest sovereign customers for planned safety changes in the 737 Max. The stock's strong short-covering rally was showing signs of getting second wind after the close, but in any event, the Dow is not going anywhere without Boeing's leadership.

Are these guys good, or what! On Wednesday, with Boeing shares getting clobbered, DaBoyz somehow managed to close the Dow six points higher on the day.  That may not sound impressive, but considering that Boeing is by far the most heavily weighted stock in the Industrial Average, the feat was akin to getting a 747 Dreamlifter airborne with two engines out and a half-dozen Abrams battle tanks in its belly.  The effort was rewarded with exactly the kind of headline Wall Street needed to distract the herd from the urgent distribution that has been occurring daily: Dow Tacks on a Modest Gain in Quiet Trading. This innocuous report belies the increasing likelihood that the steep recovery begun on December 26 is about to breathe its last. There are many good reasons for this, including: 1) incipient recessions in China and Europe; 2) a climactic frenzy in IPOs, with Uber leading the pack with a hoped-for $100 billion valuation; 3) falling auto sales...everywhere; 4) a dead-cat bounce in housing; 5) Q1 earnings growth that is expected to fall for the first time in three years; 6) a flat yield curve that is making it extremely difficult for the big banks to shuffle paper profitably; 7) higher energy prices that are starting to impact the transportation sector; and, 8) some key tech stocks that have lost their luster. Time to Fight the Fed? Offsetting all of these negatives, at least in the giddy brains of permabulls, is this: The Fed has no plans to tighten and could conceivably even ease. Place your bets!  But before you do, consider that the Dreamlifter is about to take on the added weight of a growing scandal tied to two 737 Max 8 crashes in the last five months that killed 346 people. The stock lost nearly

As much as Democrats enjoy wagging their fingers at all of us racists, homophobes and climate-changers, their first love, borne of longstanding political tradition, is kicking fallen bankers in the nuts. It doesn't hurt that in the eyes of the Democrats and America's flourishing grievance industry, many of the perps happen to be privileged white men. Wells Fargo's bankers in particular have been bludgeoned worse than a pinata at a Cinco de Mayo party, and last summer they paid $575 million to end investigations by 50 states and the District of Columbia. What did they do to deserve this shakedown? I can answer that question from personal experience, since I was one of the alleged victims. I came to possess about a dozen accounts at Wells, including business and personal checking, credit and debit cards attached to each, assorted savings accounts and related plastic. I didn’t need so many accounts, but Wells cheerfully opened them for me anyway over a period of several years, ostensibly so that I could enjoy all the features and privileges associated with each. The Lawyers Score Again! Eventually I was inundated by credit/debit cards, pin numbers and monthly statements showing little or no activity. I brought all of the cards into the bank one day and asked them to purge as many as possible. This they dutifully did, and that was the end of the story, at least for me. But it was just the beginning for a plague of tort lawyers and grandstanding politicians like Sen. Elizabeth Warren. They did a number on Wells with repercussions that have continued to this day despite the $575 million extortion payment.  Most recently, Wells' CEO resigned -- the second to quit in the last two-and-a-half years. He was not under a cloud of scandal, just a capable,