Weekend Open Thread: Taxes

qqqqtrader kicks of this Weekend Thread with a link to the "Purple Tax Plan."

It's a provacative idea and worth debating.  The main goal of any new "tax scheme" should be the elimination and simplification of the overall scheme.  Basically, 80% of Accountants and Tax Lawyers should be doing new lines of work after a Tax Overhaul.

Any new structure should be "reality based."  There's a common refrain from those on the socio-left:  "RAISE Taxes on the Rich.  If we just did that, then everything will be ok."  The problem with this simplistic concept is that really Rich people have tax accountants that will devise ways to "avoid" paying taxes.  This is one of the reasons for "Hauser' Law."  William K. Hauser was an economists who astutely noted that, no matter what marginal tax rates were, the government has only been able to collect about 19.5% of GDP.  So, whether we taxed our super rich at 80% or 30%, the US Government has never been able to collect more than 19.5% on average.  Any new tax scheme needs to reconcile that concept/idea.  The U.S. has been the most powerful economic engine the world has ever seen and we've never collected more than 20% of GDP in taxes--take that Sweden!

The goal should be simplicity and "fairness."  I loathe using the word "fairness" because it's such a subjective and silly term in this context, but it is lame that some of these "Investment Partnerships" (i.e. Steve Schwartzman, Buffett, etc...) get taxed at 15% rates while straightforward small businesses ("normal everyday rich guys") get nailed for 25-30%.

Any new tax scheme must also wake up to the reality that U.S. business have TRILLIONS of dollars of overseas profits that WILL NOT come back to the U.S. until we make the corporate tax rate competitive with other nations.  

AmenRa's Corner

A place where a skillful caddy always offers cool contemplation when it comes to your "stick" selection.





Creditcane™: It's Friday and I need a drink after this weeks bullish thrashing.



SPX
Bullish short day. Midpoint above EMA(10). Still above all SMA's. Made a new 0.0% retrace (1364.56). New high on daily 3LB (reversal is 1347.17). QE2infinity. "JBTFD. Don't question it. Just do it. Trust me."



DXY
Bearish short day. Midpoint below EMA(10). No test of 0.0% retrace (72.87). Below all SMA's. New low on daily 3LB (reversal is 73.84). It's a long way to the center of the earth.



VIX
Bullish thrusting day. Midpoint below EMA(10). Still below all SMA's. No daily 3LB changes (reversal is 15.32). Deep in the "no fear" zone.



GOLD
Bullish LONG day. Midpoint above EMA(10). Made a new 0.0% retrace (1564.00). Still above all SMA's. New high on daily 3LB (reversal is 1509.10). Holding above upper trend line. Must have the precious.



EURUSD
Doji day. Midpoint above EMA(10). Still holding above the 85.4% retrace (1.4640). Still above all SMA's. New high on daily 3LB (reversal is 1.4614).



JNK
Spinning top day. Midpoint above EMA(10). Still above all SMA's. Made a new 0.0% retrace (40.93). New high on daily 3LB (reversal is 40.71).



10YR YIELD
Spinning top day. No test of 0.0% retrace (37.44). Still below all SMA's. Midpoint below EMA(10). Tested and held the 23.6% retrace (32.83). Holding the upper trend line. New low on daily 3LB (reversal is 33.56).



WTI
Bullish short day. Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace (got close). Dally 3LB reversal up (reversal is 106.84). Still above weekly 3LB mid (108.61).



SILVER
Bearish short day. Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace (49.80). Holding upper trend line. New high on daily 3LB changes (reversal is 46.09).







We're coming to a Depository near you!!!

Morning Corner 4.29.11

ATHEN (weekly info)
new low 1431.33
trend=down
low= 1431.33
rev= 1661.68; mid= 1546.51


Greece is about to wipe out all gains made in 2011. When it takes out the 2011 low from the week ending 1/14/11 expect the restructuring talk to reach a crescendo.


IBEX (weekly info)
-no change (above mid)
trend=no
direction=up (1 bar)
high= 11068.10
rev= 8923.40; mid= 9995.75

It's been fighting to stay above its monthly 3LB mid since it crossed above it in Jan 2011. This week will close above the SMA(21) and SMA(89). The housing market in Spain is in worse condition than in the US (but not by much). The line in the sand is its SMA(55). If that's gets breached then Spain will pick up the red phone to the IMF and all hell will break loose in the Eurozone.

AmenRa's Corner

A place where a skillful caddy always offers cool contemplation when it comes to your "stick" selection.



Creditcane™: I was drugged, tied up and left in a dark room…again!



SPX
Bullish long day. Midpoint above EMA(10). Still above all SMA's. Made a new 0.0% retrace (1361.71). New high on daily 3LB (reversal is 1337.38). QE2infinity. "JBTFD. Don't question it. Just do it. Trust me."


DXY
Bearish short day. Midpoint below EMA(10). Made a new 0.0% retrace (72.87). Below all SMA's. New low on daily 3LB (reversal is 73.99). Still sending out depth charges to clear the way.



VIX
Bearish long day. Midpoint below EMA(10). Still below all SMA's. New low on daily 3LB (reversal is 15.32). Deep in the "no fear" zone.



GOLD
Bullish long day. Midpoint above EMA(10). Made a new 0.0% retrace. Still above all SMA's. New high on daily 3LB (reversal is 1503.80). Holding above upper trend line. Must have the precious.



EURUSD
Bullish short day. Midpoint above EMA(10). Holding above the 85.4% retrace (1.4640). Still above all SMA's. New high on daily 3LB (reversal is 1.4567).



10YR YIELD
Spinning top day. No test of 0.0% retrace at 37.44. Still below all SMA's. Midpoint below EMA(10). Failing the 38.2% retrace (33.71). Holding the upper trend line. New low on daily 3LB (reversal is 33.71).


WTI
Spinning top day. Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace (got close). No dally 3LB changes (reversal is 113.38). Still above weekly 3LB mid (108.61).



SILVER
Bearish short day. Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace (49.80). Holding upper trend line. New high on daily 3LB changes (reversal is 44.49).



SLV
Doji day. Midpoint above EMA(10). Above all SMA's. Made a new 0.0% retrace (48.35). New high on daily 3LB (reversal is 45.53).




LQD
Bullish long day. Above all SMA's. Midpoint above EMA(10). Holding above its 38.2% retrace (109.58). New high on daily 3LB (reversal is 109.43). Now trading above its weekly 3LB reversal price.


HYG
Bullish short day. Midpoint above EMA(10). Made a new 0.0% retrace (92.66). New high on daily 3LB (reversal is 92.41).




MUB
Bullish short day. Midpoint above EMA(10). Above all SMA's. New high on daily 3LB (reversal is 101.08). Now above the weekly 3LB reversal price.



AGG
Hanging man day (better signal if color is opposite trend). Midpoint above EMA(10). Tested and held its 85.4% retrace (106.25). Now above all SMA's. New high on daily 3LB (reversal is 105.63). Also currently has a monthly 3LB reversal up.




See anything of interest?

Morning Corner 4.28.11

HUI (weekly info)
-no change (above mid)
trend=no
direction=up (1 bar)
high= 606.25
rev= 504.77; mid= 555.51

The gold bugs are not making new highs like gold. They're not breaking down either. It's holding its SMA(21) and the midpoint of the long candle (from the week ending 4/8/11). It is also trading above its monthly 3LB reversal price.


Swiss Franc (weekly info)
new high 1.1294
trend=up
high= 1.1294
rev= 1.0799; mid= 1.1047


The SNB obvious has had enough with intervention and is letting the Swiss Franc rise. It's well above all of the SMA's. I know they are feeling the pain but what can they do?


USDJPY (weekly info)
-no change (below mid)
trend=no
direction=up (2 bars)
high= 84.80
rev= 80.93; mid= 82.87

After hours shows the USDJPY trading below 82. It's quickly approaching the area that intervention may be needed/required/begged for/on bended knee. The fact that DXY is using depth charges to clear the way for new lows isn't helping matters.

AmenRa's Corner

A place where a skillful caddy always offers cool contemplation when it comes to your "stick" selection.





Creditcane™: I was drugged, tied up and left in a dark room during BB's press conference.



SPX
Bullish long day. Midpoint above EMA(10). Still above all SMA's. Made a new 0.0% retrace (1357.49). New high on daily 3LB (reversal is 1330.36). QE2infinity. "JBTFD. Don't question it. Just do it. Trust me."



DXY
Bearish short day. Midpoint below EMA(10). Made a new 0.0% retrace (73.30). Below all SMA's. New low on daily 3LB (reversal is 74.00). Sending out depth charges to clear the way.



VIX
High wave doji day. Midpoint below EMA(10). Still below all SMA's. No daily 3LB changes (reversal is 16.27). Deep in the "no fear" zone.



GOLD
Bullish long day. Midpoint above EMA(10). Made a new 0.0% retrace. Still above all SMA's. New high on daily 3LB (reversal is 1498.90). Holding above upper trend line. Must have the precious.



EURUSD
Bullish long day (another hanging man set free). Midpoint above EMA(10). Tested and held the 85.4% retrace (1.4640). Still above all SMA's. New high on daily 3LB (reversal is 1.4555).



JNK
Bearish short day. Midpoint above EMA(10). Still above all SMA's. Tested and failed its 100.0% retrace (40.78). Still below lower trend line. No daily 3LB changes (reversal is 40.56).



10YR YIELD
Spinning top day. No test of 0.0% retrace at 37.44. Still below all SMA's. Midpoint below EMA(10). Failing the 38.2% retrace (33.71). Held the upper trend line. No daily 3LB changes (reversal is 34.10).



WTI
Bullish short day. Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace. No dally 3LB changes (reversal is 113.38). Still above weekly 3LB mid (108.61).



SILVER
Bullish short day (possible bullish harami). Still above all SMA's. Midpoint above EMA(10). No test of 0.0% retrace (49.78). Holding upper trend line. No daily 3LB changes (reversal is 43.94).



SPX/GOLD Ratio
Trading below monthly 3LB mid. It has been weak for the last three months.




Morning Corner 4.27.11

Rough Rice (weekly info)
-no change (below mid)
trend=no
direction=down (1 bar)
low= 12.90
rev= 15.89; mid= 14.40

Countries who depend on rice daily are probably getting worried that it's about to become unaffordable again. This week it's testing its weekly 3LB mid, SMA(89) and SMA(21). We saw what happened when prices got out of control the last time. Just sayin'




Corn (weekly info)
-no change (above mid)
trend=no
direction=up (2 bars)
low= 768.00
rev= 661.25; mid= 714.63

Another food staple that is continuing its march higher. Ethanol doesn't help matters either. MACD(9,15,1) has crossed above zero. Williams %R is not overbought. Another reason that all will not be well in the near future.



IYR (weekly info)
new high 60.58
trend=up
high= 60.58
rev= 59.57; mid= 60.08


I find it odd that housing prices are still declining yet this real estate ETF continues to advance. A quick look at its holdings indicate that the majority of real estate may be commercial. That shoe is going to drop soon enough.

Disclosure/Warning

This blog should not be interpreted as investment advice of any kind. The authors are NOT representing themselves CTAs or CFAs or Investment/Trading Advisor of any kind. The authors may or may not trade in the markets discussed. The authors may hold positions opposite of what may by inferred by this blog.The information contained in this blog is taken from sources the authors believes to be reliable, but it is not guaranteed by the authors as to the accuracy or completeness thereof and is presented here for information purposes only. Commodity trading involves risk and is not for everyone.