Risk and Uncertainty

Volume of course is low being a holiday week, it's likely to remain fairly low next week as well. However, we have a shortened week due to Christmas. As you know, the #1 enemy of the market is uncertainty.

As I have mentioned in past articles about the tensions on the Korean peninsula, South Korea looked weak in the face of the artillery barrage the North set loose on a South Korean military base, killing civilians. The minister of defense lost his job and since, the South has stepped up efforts to bolster the weak image of the south due to inadequate responses to a number of North Korean provocations. Now the South appears to be trying to repair that image. Reuters reports that the South is set to start a rather large drill that is likely to inflame the North. Being as unpredictable as the North is, there is uncertainty in the markets, especially over an extended weekend.

Here's the story from Reuters


The bottom line, as we approach the end of the U.S trading week, I'd expect to see profit taking. This story is certainly one I would keep an eye on as you browse the news.