350zCommtech's Account Talk

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Gumby said:
Seems like everytime I set a stop on FAZ is gets hit. I am going to DCA into FAZ today without stops.
I set a 4% trailing stop yesterday on FAZ on it also got hit.:nuts:
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Good luck Gumby.

I'm sitting on my hands at the moment. It looks like the markets want to make another run this afternoon.
 
Good way to sink the market Obama.

Obama Seeks $1 Trillion Tax Increase in Budget Plan (Update2)

By Ryan J. Donmoyer
Feb. 26 (Bloomberg) -- President Barack Obama proposed almost $1 trillion in higher taxes on the 2.6 million highest- earning Americans, Wall Street financiers, U.S.-based multinational corporations, and oil companies to pay for permanent tax breaks for lower earners.
Obama’s 2010 budget proposal, released today, would reinstate the top two Clinton-era tax rates of 36 percent and 39.6 percent in 2011, up from the 33 percent and 35 percent the richest Americans now pay. It would raise taxes on capital gains and dividends to 20 percent for top earners, up from the 15 percent set by former President George W. Bush in 2003.

The tax increases, which Obama vowed to impose as a presidential candidate, would be the first on high-income earners since 1993 and would reverse a course set by Bush of lowering the tax burden on the nation’s wealthiest people.

“It’s a clear repudiation of Bush’s policy,” said Peter Morici, an economist at the University of Maryland in College Park. “It’s more Obama Robin Hood.”

Obama’s budget does keep in place Bush’s tax cuts that benefit lower- and middle-income earners and it preserves a sliver of policy that benefits the more affluent: A preferential tax rate on corporate dividends. Before Bush, dividends were taxed as ordinary income, or at rates as high as 39.6 percent in the 1990s.

‘Hugely Positive’

“It is a hugely positive step to keep that part of the ‘03 changes,” said Pamela Olson, who was the top tax official in Bush’s Treasury Department when the tax rate on dividends was reduced. “It’s good economic policy, good corporate governance policy, and good tax policy.”

Obama is also proposing to stop the estate tax from being repealed as scheduled next year and to impose a 45 percent tax rate on a married couple’s estate valued at more than $7 million.

Higher-income earners, primarily families with more than $250,000 of income, would face an additional tax burden under a proposal to reinstate limitations on their itemized deductions, which would subject more of their income to tax. In all, top- earning households would pay $636.7 billion in additional taxes over the next decade, Obama’s budget estimates.

Linda Beale, a tax-law professor at Wayne State University Law School in Detroit, said “many will object to reinstituting phase-outs for itemized deductions because of the complications that creates.”
Representative Mike Pence of Indiana, the No. 3 Republican leader in the House, said Obama can expect a wall of opposition to his proposed tax increase on top-earners. Roughly half of Americans earning $250,000 are small-business owners, and the proposed increase will stifle the troubled economy, he said.

‘Overwhelming Opposition’

“There will be overwhelming opposition from the American people and House Republicans to the idea that we should raise taxes during a recession,” Pence said in an interview. “Raising taxes in a recession is not a strategy for recovery.”

Representative Jeb Hensarling, a Texas Republican, said in an e-mail, “You cannot help the job-seeker by punishing the job creator.”

The higher taxes on individuals will largely be used to pay for expanded health coverage for lower-income Americans and to make permanent Obama’s tax breaks such as a payroll tax credit worth up to $800 that was adopted on a temporary basis in the $787 billion fiscal stimulus measure earlier this month.

“He’s being so generous at the lower-income level that making $200,000 is going to be like falling off a cliff,” said Dustin Stamper, an analyst in the National Tax Office at Grant Thornton LLP. “Say what you want about the Bush tax cuts favoring the rich, but this is just becoming punitive.”

AMT Lives On

Obama’s budget also assumes Congress will continue to index the alternative minimum tax for inflation. The AMT is a parallel system that can impose higher rates on families earning between $75,000 and $500,000 when their deductions are too high relative to their income.

Executives at private-equity firms, venture-capital firms, some hedge funds and other partnerships that receive a 20 percent “carried interest” in the firm’s profits would see their tax burdens nearly triple under Obama’s budget.
Most of their carried interest currently is taxed at the 15 percent rate for long-term capital gains. Obama is asking Congress to tax the profit share as ordinary income, arguing that it’s a form of wages; under his plan, most executives would pay 39.6 percent.

That proposal will likely reignite a debate that was waged by Congress in 2007 when the House of Representatives approved the change and the Senate never considered it.
Corporate Tax Increase

Obama proposed $353.5 billion in higher taxes on corporations over the next decade, the bulk of which would come from “reforming” rules that allow U.S.-based multinational corporations such as General Electric Co. to defer U.S. tax on profits they earn overseas. GE has about $75 billion offshore on which it has never paid U.S. taxes, according to its regulatory filings.

Obama’s budget estimates such reforms and beefing up Internal Revenue Service enforcement of international tax rules would generate $210 billion in additional revenue over the next decade. He also proposed to limit tax shelters by requiring they serve a business purpose by redefining the tax code’s “economic substance doctrine.”

‘Last-In, First Out’

He also proposed ending a tax-accounting technique called “last-in, first out” or LIFO, that primarily benefited oil and gas companies when oil topped $100 a barrel but is widely used across industries.

Republican senators in April 2006 floated such a tax increase but backed off after Exxon Mobil Corp. Chairman and Chief Executive Officer Rex Tillerson called the proposal a “backdoor windfall-profits tax.”

In addition to oil companies, the repeal of LIFO would hit retailers, automakers and makers of non-automotive heavy equipment, textile makers, consumer products, drug companies, alcohol and tobacco manufacturers and wholesalers when times are good, according to tax experts.

The accounting method has been commonly used since the 1930s and is viewed as the most accurate measure of income for financial statement purposes, according to the congressional Joint Committee on Taxation, a nonpartisan panel.

To contact the reporter on this story: Ryan Donmoyer in Washington at rdonmoyer@bloomberg.net;
Last Updated: February 26, 2009 14:12 EST
http://www.bloomberg.com/apps/news?pid=20601070&sid=aFsqsDD7lF1Y&refer=home
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Frixxxx said:
Nice, I try and hit the known positions for 10 pips. I don't know what spread you're looking at, but 7-10 pips for me is usually my limit. My software is Net long right now. If I see a reversal, I start profit taking and DCA'ing.:cool:
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I was hoping for it to go to 98 but my charts showed it bottoming at 98.30, so I got out at 98.34. 98 would have sweet.:D

I went long at 98.30 and got out at 98.40 for a decent gain.
 
350zCommTech said:
Out at 98.34.:)
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350zCommTech said:
I was hoping for it to go to 98 but my charts showed it bottoming at 98.30, so I got out at 98.34. 98 would have sweet.:D

I went long at 98.30 and got out at 98.40 for a decent gain.
Click to expand...
Short and sweet for intraday.

I've got 18 long positions under 95 and 12 more under 97. I've maintained positive variance and equity since 2 Feb. A stress test of my software would be a 400+ pip movement short. I'm not wishing it, but it would be a great show if I'm DCA'ing properly. I've only had a 200 pip reversal (successful) now I really want to see if I'm the genius I think I am!!!!!!!
 
This is wishful thinking and definitely NOT something to base a trading play on, but, what if Obama & Co. planned to let the market come back so the TALF can purchase the preferred/convertible shares at a decent buy price. If the PPT does exist, they can than manipulate and prop the market and even have a chance at making money w/ a portion of those TALF dollars. No gov't official has ever said gov't ownership is permanent.

On a sidenote, I think people are too negative on the ARRA funds. That money will eventually help GDP and put some balance back in supply & demand. So, at the worst, any pullback is setting a trading opportunity for TSP'ers.
 
fedgolfer said:
This is wishful thinking and definitely NOT something to base a trading play on, but, what if Obama & Co. planned to let the market come back so the TALF can purchase the preferred/convertible shares at a decent buy price. If the PPT does exist, they can than manipulate and prop the market and even have a chance at making money w/ a portion of those TALF dollars. No gov't official has ever said gov't ownership is permanent.
Click to expand...

You're giving them too much credit. They have been over paying for every asset all along, and on purpose. Of course, we always find out much later about how the .gov supposedly got ripped off. They are flying by the seat of the dumb asses.

fedgolfer said:
On a sidenote, I think people are too negative on the ARRA funds. That money will eventually help GDP and put some balance back in supply & demand. So, at the worst, any pullback is setting a trading opportunity for TSP'ers.
Click to expand...

I agree with that. The question is when.
 
Hi 350,
You and other active members on your thread, that trade in open markets (ET, etc.) may be interested in a new "Traders Tax" Bill recently introduced. See thread here...
http://www.tsptalk.com/mb/forumdisplay.php?f=48
I've heard opinions that traders would cut back - further harming markets.:worried:

BTW, you thinking F is good to hold onto going into beginnning of March? ;)
 
hessian said:
Hi 350,
You and other active members on your thread, that trade in open markets (ET, etc.) may be interested in a new "Traders Tax" Bill recently introduced. See thread here...
http://www.tsptalk.com/mb/forumdisplay.php?f=48
I've heard opinions that traders would cut back - further harming markets.:worried:

BTW, you thinking F is good to hold onto going into beginnning of March? ;)
Click to expand...

Thanks for the heads up on trader tax.

As for F, I don't know. But since I feel like capitulating, I should just stay in it. There are no bond austions next week that could hurt the F like the last two weeks.

The gambling part is that if the Nov. lows hold and nothing blows up over the weekend, the market could shoot up, hurting the F fund. We have seen lately that even when the market goes down, bond yields rose anyway. But next week could be different, with the lack of autions.
 
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