Discuss Market Comments 12/16

The trend matters - Stocks rallied yesterday, recovering the losses from Wednesday. The Dow gained 42-points and closed at its highest level since 2008...

Market Commentary for 12/17/10

Current Daily Market Commentary

 

[Guest]

Will the market begin to rollover if the tax cut doesn't get passed soon? If it does pass does the market quit consolidating between 1230-1245 and finally take off to pressure 1300? I also am wondering if TSPTalk will have information and some guidance about what to do next year around this time when the Roth option is due to be implemented? Thanks.

 

[tsptalk]

I think the market knows that something will be passed. Even if the tax cuts expire on Jan 1, the new congress will take care of it when they convene.

I haven't given much though to a Roth option, but I'm sure it will be talked about extensively on the message board as it approaches.

 

[EmoDx]

Will the market begin to rollover if the tax cut doesn't get passed soon? If it does pass does the market quit consolidating between 1230-1245 and finally take off to pressure 1300?

My opinion is if we don't get the Tax Bill signed by Monday or Tuesday there will be a lot of pressure on speculators and dumb money to take profits. I think this would add a lot of short term volatility.

That being said, I really do think that the Tax Bill will be signed in it's current form, or something very similar. Too much pressure on the DEMS to not sign it, even if retroactive. At that point I think it will be buy the news and we'll see resistance be taken out. Where the ride stops is anyone's guess.

- Emo

 

[tsptalk]

I guess it was signed in the house late last night.