I GUESS I MISSED THIS ONE

As I look at the chart of the SP 500 above, then listen to this chatter about how if the current tax rates are not extended we will have a double dip recession, it makes me laugh. This is absurd on a number of fronts. First, the single dip is not over yet. It is only the FED's manipulation of the stock market to these bubble levels that provide any evidence of a recovery. We all know this is bogus, although the numbers are what they are, you can sell stocks for a much higher price than you could have previously. However, there is so much BS surrounding virtually every subject now it is almost impossible to figure out the truth. Since my wife constantly has FOX news on I often find myself on the 2nd floor in my entertainment room watching ESPN. I just cannot take all of this crap anymore. Fortunately I have a bigger plasma up there for just this reason, so I get the bigger TV screen for my isolation! Although I am a conservative, both sides are equally full of it and I just can't take it any more.

There was an important memo I apparently missed regarding the tax structure in this country. I must have missed the enactment of the law that made it illegal to contribute more to the government in tax payments than what the tax code requires. This apparently makes is impossible for so many people that think the "rich" should pay more, from contributing more themselves. Obviously since it is such a great idea to pay more, those proponents of progressive tax rates would clearly also pay more than there share if it were not prohibited by law. Oh, wait hang on a minute, they don't want to pay more they just want someone else to. They are being generous with someone else's money! I would back a law that eliminates all tax shelters from the Hollywood elite, one fat film maker in particular. This way since they want everyone to pay more they won't mind also doing so.

The way the law would work is that you have all the tax shelters available that everyone else has to begin with. If you speak out publicly indicating a preference for progressive tax rates, your rights to these shelters go away, hence you will pay more taxes. After all you want to pay more as a big wage earner so you will get what you wish for. You will get what you want everyone else to do. Seems fair to me. This would certainly solve some problems wouldn't it? The government spends too much, it is not a matter of gate receipts. One more comment about how we need to spend more on education and I am going to kick someone. We spend trillions that is not enough? Maybe we should give every teacher a million dollar annual signing bonus, would that make people happy?

As far as the market goes, the FED is in complete control of this market, so any news on this front either way will have no effect on stock prices. If a dip were to begin they would just through their channels launch a massive futures buy program that would bring it right back up. I am obviously in favor of extending the current rates, but I doubt either way it is going to effect the economy if they are not extended. However, I do have a close friend who told me over dinner a couple of months ago that he was holding off on expanding his business, opening other offices and hiring more people, until the tax rate issue got resolved. I suppose he serves as a real life example of what some claim is happening right now. I personally will cut back on charity if they do it to make myself whole, of course. To think that no changes in consumption at all will happen is just disingenuous BS. Maybe the billionaires won't change, but I have had million dollar years and you would be surprised how little that gets you ahead by the time you pay taxes and everything else that goes along with it. Most people making that amount of money are not living in $800 per month apartments, so they have overhead that eats quickly into the net of about half of the gross pay. Wouldn't it be great if the government resulted in me rescuing fewer animals in need because they want to penalize me for making money?

This rally is not going to get stopped by this legislative battle either way so don't buy into that crap. We have year end bonuses now on Wall Street which will be huge so these insiders have every intention of not letting any of those go here in the last 2 weeks.

It looks to me like the grains are setup to make another push higher.

Here is a chart of Soybeans and you can see where my order is resting to go long in this market today if we trade up that high. It appears to me that Corn and Soybean Meal are the laggards here, so longs should be done in the other 3 if they are done at all.

I don't see much else today, I expect the markets to be quiet. I was also trying to go long Sugar today, but it appears that order is not going to be filled.