Must Read: Today, the WSJ runs an Op-Ed on President Obama’s tax plans. It is critical for anyone who wants to understand what’s at stake. It explains why cap gains and dividends are taxed at the rates they are due to the double taxation structure. Please read it.
Given the news today that 36 Obama aides owe $833,000 in back taxes, I think we all need to understand the code a little better…
GDP trade for tomorrow:
Today at 10:20 AM ET, I’ll be appearing on CNBC’s Squawk on the Street going over this trade. As always, adjust the levels to new information and movement. Q4 US GDP and market is expecting 3.0%.
If US GDP<3.0%, Buy USD/Sell SEK.
If US GDP=3.0-3.5%%, do nothing.
If US GDP>3.5%, Buy MXN/Sell JPY.
I think the risk is for a stronger than expected GDP, so let’s do the MXN/JPY trade.
Entry 5.8800 (hoping for a pullback today)
S/L 5.7850 (below recent breakout highs, should be support)
T/P 6.2850 (below … …READ MORE
In fairness to the President Obama, SOTUs are typically speeches of broad political themes with a spate of nationalism liberally sprinkled throughout the text. Yet, last night seemed particularly disappointing given the United States’ serious problems over the debt that has been created since Mr. Obama came into office ($10.6 trillion to $15.2 trillion) and the budget deficits that have been the largest in the country’s history (FY2009 $1.4 trillion, FY2010 $1.3 trillion and FY2011 $1.3 trillion).
At this point, the United States remains firmly on the Japanese path to fiscal hell with the pathway paved by both parties. However, … …READ MORE
