The Day After
- I imagine the 95% of folks who are promised a tax cut were up late last night figuring out how they're going to spend all that extra money. A new SUV? Switch from domestic to imported beer? Lap dances from a different stripper every night? Ah, the possibilities!
- Meanwhile, the 5% promised a tax hike are probably meeting with their tax accountants today and planning on how to shelter income, dividends and capital gains from the tax man. Move those dividend stocks back to the IRA!
- And the folks caught in the middle are probably a little wary of Obama's tax plans and are waiting for the fine print to see if the number is really $250K or somewhere a bit lower.
Sell the News
- After a strong rally, stocks are selling the Obama news. Much of this was already priced in.
- Yahoo Finance suggests that President-elect Obama will be good for unions and auto companies. Although, I wonder if stronger wages and benefits, combined with a higher corporate tax rate, would accelerate the move of jobs offshore.
More Stuff
- ISM at 44%, a record low. CBS Marketwatch quotes a manager as saying, "Stop all discretionary spending." YIKES.
- Hey, is that the $VIX below 50?
- Day Shark notes that the RSI(2) may be working again. Cool. Also, I've been ignoring the black box during the volatility, and moved cash to the sidelines, now looking at it again more seriously. Updates to come!