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Now Bidenís Tax Proposals Appear On the Radar Screen Of the Market


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#11 tradesurfer

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Posted 11 January 2021 - 09:23 AM

What the hell took the stock market so long to realize that Biden tax plan ?  I thought the markets were discounting mechanisms



#12 typicalbear

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Posted 11 January 2021 - 11:06 AM

 

STATIC analysis says that if you make a million dollars selling a million apples for $1 each, then you will make a million million by raising the price $1,000,000 per apple.

 

But Corporations don't really pay taxes  (customers do in pass-through higher prices)

 

Thus this may be a bit misleading:

 

S&P 500: tax hit (estimated S&P 500 earnings impact based on Biden’s proposals )

  •  Technology                     down 9.2%
  • Health care                     down 8.4%
  • Communication services  down 8.2%
  • Consumer discretionary   down 7.5%
  • Financials                         down 6.5%

 

 

 

The old adage is BS:Taxes are passed to customers as higher prices, but then, as with the last tax cut, corporations use the cut for buy backs and exec bonuses...they keep it.    I haven't heard of any corporations passing the cut back to the customer.  Instead, the customer inherits the resulting increase in fiscal deficet created by the cut.



#13 redfoliage2

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Posted 11 January 2021 - 01:50 PM

I see the market is preparing for a crisis in the near future as USD and gold both going up with VIX today ..........


Edited by redfoliage2, 11 January 2021 - 01:54 PM.


#14 redfoliage2

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Posted 11 January 2021 - 03:33 PM

Goldman warns of "Short Term Indigestion in stocks":

 

https://www.zerohedg...ant-virus-surge



#15 redfoliage2

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Posted 11 January 2021 - 04:09 PM

I see the market is preparing for a crisis in the near future as USD and gold both going up with VIX today ..........



Is this that has the market concerned?

https://www.reuters....e/idUSKBN29G0Q5

#16 redfoliage2

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Posted 13 January 2021 - 10:25 AM

As the ST support continuously to hold it looks to me that this is likely just a consolidation at highs.  After it is done we should expect higher highs .....................


Edited by redfoliage2, 13 January 2021 - 10:34 AM.


#17 redfoliage2

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Posted 13 January 2021 - 11:54 AM

As the ST support continuously to hold it looks to me that this is likely just a consolidation at highs.  After it is done we should expect higher highs .....................

Expect SPX in the range 3850 - 3880 by the end of the month ...................


Edited by redfoliage2, 13 January 2021 - 11:55 AM.


#18 redfoliage2

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Posted 13 January 2021 - 03:44 PM

BTW, This is an OpEx week I see the market is more likely to go higher tomorrow/Friday ...................


Edited by redfoliage2, 13 January 2021 - 03:45 PM.