Tax Day, Tea Parties And New Short Trades

April 15th, 2009

What was shaping up to be another snooze of a trading day ended with a bang for the bullz. Granted they didn’t even come close to yesterday’s open but still a healthy push – maybe it’s just the final kiss goodbye before we sell off fast. Still, the slow time gave members and I a chance to enter into a couple more short trades (or put options depending on the security) before the close today. I still cannot believe how over-bought some of these companies are out there. The same mentality is in place here at the top as it was down at the bottom – just in reverse of course. Remember when we were at the bottom and nobody would have ever thought that BAC and C and WFC would be up several hundred percent in a matter of week right? Yet here we are with everyone thinking that there is no way we can go lower from here, that all of the economy’s problems are solved and that the long term bottom is in. The truth is that all those people are dead wrong and every chart I look at is say “short me please!”

 

As for a note on Tax Day. While my taxes were done many weeks ago, you can image all the pages and pages of trades that I had to go through last year – 43 to be exact – I still am of the opinion that most individuals pay way too much tax in this country. Of course this probably won’t change anytime soon given that the government is spending like a drunken sailor, the fact still remains that if you rob people of their incentive to produce and create goods and services we will see more and more people asking for hand-outs. Believe me, I give my fair share and then some to different organizations, but why work to make another $1 when the government is going to take $0.50 – in my tax bracket with my state’s income tax? As such, I am off the DC tea party! Hope to see some of you there!

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