Stock Market Analysis – 04-15-2010
Tax day! With the booming market during 2009 (and the busted one in 2008) you most likely made more in 2009 on capital gains than 2008. In these situations, the key is to always make sure you withhold just over 100% of the down year’s taxes to get free margin on your $5k, $10k, $100k, etc. for the whole up year. The downside is that you end up paying the piper on tax day, even if it is penalty free, but at least you weren’t paying any juice to your broker for the leverage. Maybe some day my return can look like Obama’s though – a $5.5 million AGI would be nice.
Anyway, the market had some strong volume, but lacked movement. The telling thing is that GOOG announced some good earnings, but dropped almost 5% in the afterhours trading. Remember last year when everyone was announcing that they lost money, but they were losing less than the market expected so they were shooting up after the earnings calls? Well, now we’re doing the opposite, so that could mean this overbought market will finally start cooling off. Pay close attention to GOOG tomorrow to see if they carry this bearishness through the day. That could be an indicator of what’s to come over the next month or two.
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