While the Dow declined almost 200 points on Monday the other indices were down much less with the NASDAQ 100 closing higher, a good sign for the bulls. Overall participation was poor and the defensive sectors were hit the hardest which was little bit of a head scratcher. As I mentioned yesterday, this week is the weakest week of the year on a seasonal basis. It is also another down Monday with an opportunity for an up Tuesday. I mention this because since the market’s Q1 bottom almost every down Monday has been followed by an up Tuesday. If the bears finally make a stand and repel what looks to be early morning strength, that would be a tiny clue that the market’s character is changing, I remain in the pullback camp for the next few weeks as the window of opportunity is now open for some short-term weakness.
There are many short-term opportunities right now in gold, bonds and the euro. And all with the Fed beginning a two day meeting. Rates are going up 1/4% tomorrow.
That’s it for today. I am on the train to NYC to join CNBC’s Squawk Box at 8am followed by a full hour with the good folks at Yahoo Finance on their Midday Movers show.
