The North Korean threat did little to hold the market down on Monday as the major indexes were up another day. Monday was a bank holiday and the bond market did not trade. This may have been a reason for the exceptionally low volume on the NYSE, but the volume was extremely low on Monday. Let’s keep an eye on that piece of information for Tuesday to see if it comes back again.
We don’t think that Monday’s action did much to change the landscape of the market and we will wait until tomorrow to make any more comments on the direction of the market. We still feel the market is overbought and will continue our bearish stance. We are expecting at least a correction from these Dow highs.
We are pleased to see the comment from Erick in our Sunday evening update. We are listening to the Fleck interview as we are writing this and think it’s a great opportunity to hear one of the best short sellers in the business. Fleck is someone we read everyday via a subscription to his Daily Rap. It’s fairly cheap at $99 per year and he pretty much writes every day. Web site is FleckensteinCapital.com if you are interested. He does the Contrarian Chronicles on MSN Money once a week. Go check out the website that Erick has given us.
Dow Industrials: 11,857.81 +7.60