Kind Words from Terry Laundry, Founder of T Theory

"Parker has sent me what I consider to be the most important refinements to T Theory I have ever received from anyone in an e-mail . . . which he calls Tweaking the 13th Advance Decline T." September 29, 2010

"Parker has sent me a very interesting concept which is the NY Advance Decline line divided by the put-call ratio . . . What he's done is introduce the idea of sentiment." September 15, 2010

"Parker discovered the Money Flow Ts . . . This is something like the Holy Grail in T Theory. You are always looking for something that will help you refine the peak date." October 17, 201

"Money Flow Ts are probably the greatest new thing I have seen in 20 years in terms of time symmetries." December 5, 2010.

Friday, December 17, 2010

$$ House Passes Tax Cut Extension


This news should be priced in for the most part, and should not be cause for some huge new rally.  It does, however, remove a potential stumbling block to the rise in equities.

In other news, Moody's downgrades Ireland's bond ratings five notches from Aa2 to Baa1. 
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3 comments:

  1. Perma BearDecember 17, 2010 at 8:25 AM

    I suspect that there will be a sell off for 2 reasons.

    a. Buy the rumor, sell the fact.

    b. With the passage of the tax bill it now makes sense to take your capital losses in 2010 and defer your capital gains until 2011. Without the extension of the tax cuts it would have been stupid to take your losses against a 15% tax rate when you could wait a couple of weeks and take them against a 39.6% tax rate.

    ReplyDelete
  2. PositionSizingDecember 17, 2010 at 8:54 AM

    "Investment taxes: The bill extends for two years the current tax rates on long-term capital gains and dividends. The top rate for both will remain at its historic low of 15%. The rate will remain zero for couples with taxable income below $69,000.

    According to the Tax Policy Center, more than half of the benefit of this extension will go to people with incomes above $100,000. Absent the extension, the top rate on long-term gains would have risen to 20%, while the top dividend rate could have risen to as high as 39.6%."

    http://online.wsj.com/article/SB10001424052748704073804576023842991850786.html

    ReplyDelete
  3. CycleguyDecember 17, 2010 at 12:59 PM

    Parker, I am posting a question for you on bonds here because the other blog is full of comments. The TLT appears to have completed five waves down, so the rebound could bounce .38 to .5 of the decline. I am not sure how MFI works on one that has been declining for weeks. Thanks for any help.

    ReplyDelete

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