Another Day, Another Record High and Who Knows Where It Will Go

NEW YORK (TheStreet) -- Another day, another closing all-time high in the DJIA and the S&P 500 on Monday, the first trading day in June. The DJIA closed up 26.46 points at 16743.63 while the S&P 500 closed up 1.40 at 1924.97. The Nasdaq finished down on the day at 4237.20 losing 5.40 points. The Russell 2000 index continued its losing ways, down 5.60 at 1128.90.

In many ways, the Russell 2000 index is the only index that is acting in a rational way. The economy is showing many "Growth Slowing" indicators and the Russell 2000 is a growth index. So, as the economy continues to slow the Russell 2000 index is in a Trend Bearish formation with many small caps stocks bearish. That is the way things are supposed to work.

Then you have the DJIA, S&P 500, and Nasdaq all in "Trend Bullish" formation. A two-tiered market, if you will. I have been mentioning this negative divergence for a while now but things do not seem to change. How long can we have a divergent stock market?

I do not have the answer to that question. But I suppose that as long as the Federal Reserve continues to print the money, the markets will continue to rise. I suspect the Fed will move to slow the taper of quantitative easing as the economy continues to show signs of slowing. I am sure I am in the minority on this point. I expect the Fed to announce a slowing of the taper as we move forward in the summer months. If the Fed continues to taper that will lead to higher inflation and higher rates which will destroy the economy. If they continue printing money they will continue to burn the U.S. dollar and destroy the dollar hegemony. In sum, the Fed has no good alternative. It is backed into a corner with no way out. What started out as a positive QE program a few years ago has been parlayed into an uncontrollable printing machine. When this all comes crashing down will happen sooner than most think. This will be an unprecedented avalanche that will wipe out many middle American's savings. As a matter of fact, when all is said and done, do not be surprised to see a new international currency as the dollar becomes worthless. This is a bubble that has been created from the misguided Fed policies of the past. In essence, this will be the third Fed created bubble in the last 12-14 years. So, party on hedge fund community. You are the only players in the market. I will continue to pick my spots in this market and attack. Currently, those spots are on the short side of this market. The Dow S&P and Nasdaq will all be approaching extreme overbought on Tuesday with a green open. The gold sector is my favorite oversold for long positions while the semiconductor sector is the most overbought. On Monday. I continue to hold my AmerisourceBergen (ABC) short and Barrick Gold (ABX) as my long position. At the time of publication the author was short ABC and long ABX. This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff. >>Read more: Apple WWDC Live Blog Recap

50 Great Colleges Offering Tuition Discounts

50 Great Tuition Discount Colleges For 2014

Last year at about this time I published a list of 50 well-regarded colleges that had reported to the National Association of College Admissions Counseling that they had not filled up their freshman classes, despite the traditional May 1st deadline passing. These schools were thus hungry for students and were offering cash rewards to acceptable applicants.

NACAC's  new 2014 "College Openings Update" list is out and there are a whopping 470 colleges listed as still urgently seeking either freshman or transfers students. This large and growing list of colleges that are unable to attract enough students is an alarming reminder of how troubled and inefficient the market for higher education is in the U.S. The vast majority of colleges continue to engage in "prestige" pricing, but ultimately are forced to quietly offer deep discounts in an attempt to fill up their classes. Then, when even that doesn't work, hundreds report that they still can't find enough "customers."

Economics 101 tells us that either college admissions officers and their consultants are inept, or more likely, that the supply of schools offering college degrees needs to drastically shrink. But don't hold your breath waiting for colleges to go bankrupt en masse; history shows that these government subsidized institutions can linger on for years even when their financial statements bleed red ink. [If you want to see the Forbes Financial Health Grade of your Alma-mater, click here.]

As 18th century British nobleman Baron Rothschild once said, the time to buy is "when there's blood in the streets." He was referring to stocks, but the same holds true for those in the market for college bargains.