I have often stated that unexpected news will always trump anyone’s model, and today has been no exception. Stocks hit session lows today after a report surfaced saying the House is considering a plan that would lower the U.S. corporate tax rate gradually, rather than all at one. The plan being discussed by the House would see the corporate rate at 20 percent by 2022. The gradual plan is “has been considered” but is not final, according to news reports. As reported by Bloomberg, “The announcement of the gradual nature of cuts immediately knocked ten points off the SPX.”
TOT daily traders went 300% long at SPX 2578 today. On the news, the SPX sank to 2568, and is currently about 2572. Major support is at 2560. Raise the stop on 1/3 of the position to SPX 2564 and on the other 2/3 to SPX 2557.
Thanks for the opportunity to be of service, and I’ll email you again later today.
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