Fun Fact #11
Did you know that dividends are taxed at a lower tax rate than normal capital gains? This is assuming you have held the stock for long enough. Otherwise you could just buy the stock on the expected dividend date, and pay less taxes for the gains.
The target price means this is where I think the stock will reach within 2 weeks. This does not mean this is a turning point necessarily.
The market had a wild swing today, so although I was planning on just reviewing the indexes once a week, I’ll be looking at QQQ, SPY, and DIA today.
The massive bounce today seems to be as a result of the delayed tariffs on China. It could also be that short sellers are taking profits, but who knows. I still think the Trump tariff announcements last week should not have rattled the markets. People already knew the announcement was coming up 2 weeks ahead of time.
QQQ looks really strong right now. I expect another green day follow through tomorrow. The volume is quite light which tells me that the bulls aren’t in control yet. This reminds me of the February move represented in the oval.
If you look below, you can see that the SPY and DIA have the same chart. They both have started forming a double bottom, but the double bottom pattern confirms when the index breakouts above the neckline (to form the “W” shape). Expect the indexes to rise but come to a halt near that neckline resistance. We might be in for another selloff soon. I’m staying long, but keeping my puts for protection.
As of finishing this post, I’ve noticed that futures are extremely green. It looks like we’ll be opening about 1% higher tomorrow morning.
Good night, and let me know if you like/dislike that little chart I have at the top of the page!