A North Korean Nuclear test over the weekend led us to believe we saw an event that the market would take cover and hide. If not the Korean Nuclear test, then maybe the ugly numbers from the Case-Shiller Index would cause a market pullback. Nope!
Market participants seized on the consumer confidence numbers, which were the only positive in the headlines, and pushed the market up substaintially, with large institutional investors leading the way as volume swelled across all major trading floors.
In a call with an investor yesterday I was asked “What would you like to see the Capital Market’s do?” My answer was simple, stay in a trading range of approximately 870 to 930 on the S&P 500, our favorite index for the next 90 days so we can get to the next earnings reporting season to check how companies are doing. If we go much higher, or lower, this will be in anticipation of events without complete data. Most likely my hope will not come true as market participants tend to get to optomistic and too negative at any given moment.
Only time will tell. Patience. JK