Markets Hit Their Stride, And Biden Trips Them

Posted: Apr 22, 2021 1:40 PM
Markets Hit Their Stride, And Biden Trips Them

Source: AP Photo/Andrew Harnik, Pool

The gravitational pull of the market has flipped again, and the bias was to the upside.  What hasn't changed is underlying anxiety. The market starts slowly, but then finds its stride.  Volume is tepid but potential sellers seem to have been done, so slowly each session builds as buying begets buying.

That really gets the train moving and builds momentum, as new highs and all the major indices are flirting with new highs.

Industrials are the best performing sector, but I like the action in retailers most.  After four years of drift, pure brick and mortar names in the XRT have some on strong. 

Hold the presses. Just as momentum was gaining to the upside, Biden dropped a nuke on the stock market. He is considering raising capital gains taxes up to as much as 43.4% on wealthy people (those making $400k and up), almost double the current rate. I can only hope this is a trial balloon, but it’s shocking.