It’s a sloppy session, and yet, I feel the market could be a lot lower. I’m intrigued by the action in semiconductors, which I highlighted this morning.  May of the names downgraded opened lower and then turned higher, and I think the buyers are deep-pocketed institutions.

Meanwhile, the S&P 500 is edging away from the 50-day moving average and nearing a dangerous point where it might have to test the lows of earlier in the year.

There is no doubt nibbling, accumulation; but it’s not the kind of action that stems moderate downside pressure.  It is the kind of action that gets panicky when the major averages turn higher as stealth buyers put a greater emphasis on owning the names on their list at the right price.

Tax Pain

Well its Tax Day, which means lots of people including yours truly took an extra gut punch today.  I don't want to sound bitter, but I am – the rates are too high.  It’s an honor and privilege to pay taxes, but my combined rate is well over 50%, and I’m not a dastardly billionaire.

In the United States, strong inflows into equities dried up in part I think because people had to pay big taxes on big gains from last year.

In any given year, it is estimated, we use seven billion hours and spend $140 billion complying with Tax Day. 

But this year is especially frustrating.  Investors are writing check to pay for last year’s gains while grappling with this year’s losses

Many feel “like what’s the point.”   

I get it, and it certainly invalidates arguments to tax unrealized gains, but do not let it dissuade you.

Meanwhile, do like I‘m going to do and find a great accountant like President Biden’s person because the Commander in Chief only paid 24% in federal taxes.