Updated Trading Advisory: Revisited Geithner’s comments, and Judd Greg just now… fiscal cliff coming?
ed.html> (reprinted with permission from InvestortradeStocks.com, with
Looks like a deal just might be in the works. With Geithner’s “we’ll go off
the Cliff if no raise in rates” was buried “we need higher rates to preserve
the Charitable deduction”. That’s the deal… or so. Boehner already put
$800B + Tax Revenues on table, he goes to $1T (big mistake, policy wise and
economically speaking, but it is what it is).
Obama gets his 37.5% top rate, Republican’s save face with the Charitable
deduction, they use Romney’s “deduction basket” for those below $250k, some
cuts in Entitlements come, but this is real issue now (SS is easy logically,
so we’ll see, but lot o politics on this end).
Timing more important to us than quality of deal. Raising taxes on that 2%,
mostly small business with Obamacare taxes, will keep U3 Unemployment
chronically high. BAD, very bad, but market still rallies which is all we
care about here. Timing is later than sooner, sausage takes some time to
make. Between Christmas and New Year’s best guess here.
All this is speculation, but have to have a framework of analysis. What to
do? Be in position to be in position. Have Elbow List ready, what do you
want for next 3 months, what do you want for a 5-10% pop over a week or two?
(our DTL FWs will do far more than Indexes, both directions of course).
Huge volume in AAPL I got a full position long, double bottom. Still 33%
Cash, 40% XXXX and rest long these 8 stocks, all stalwarts: XXXX XXX XX XXXX
XXXX…. We’ll be very careful, no red, or we’re out. Don’t Take Losses.
Period. Will look for dips, and buy those dips, want at least 15 stocks.
With 2 more weeks of chop chop (best GUESS) plenty of opportunities will
come. Like jobs data tomorrow, like FOMC Q1000 😉 announcement next
week…will revisit each stock on my DTL Focus Worksheet (our 50 best) (will
also revisit our DTL 100) but don’t expect a lot of changes, its just which
ones? Can XXX XXX XXX XXX XX XX XXX XXX make runs? Is it only XXX XXX XX XX
XX.. or Tech plus some of each? Dunno. Will follow lead of market, but we
are rife with head fakes, so companies that guided up or are at a “turn” are
where to be. Hard work coming on evaluating OBV, possible cyclical turn and
China EU landscape post deal. Stay tuned.