To gain an edge, this is what you need to know today.

Unprecedented Deal

Please click here for a chart of    Nasdaq 100 ETF () minimum tax

Note the following:

  • For a long time, large corporations have been successfully scheming to avoid taxes using foreign tax havens.
  • An important item on Biden’s agenda has been to stop wealthy corporations from avoiding taxes.
  • Biden has been calling for a minimum corporate tax.
  • The gurus had given Biden no chance of succeeding with G-7 (an informal club of seven wealthy nations) because of the power of the corporations.
  • Now the first step has been taken proving the gurus wrong.
  • The G-7  has reached an unprecedented deal to impose a global minimum 15% tax on corporations.
  • The deal is likely to be presented to G-20 in about a month.
  • The biggest obstacle to the deal is the U. S. Congress.
  • Initially, investors did not like the deal and there was a slight downdraft in the stocks of companies that will be affected in the early trade.   However, investors are now buying these companies confident that the U. S. Congress will stop any attempt to make wealthy corporations pay 15% minimum tax.
  • We will be publishing a list of stocks and ETFs in the portfolios that will potentially be adversely affected if the opposition in the U. S. Congress can be overcome.

Bitcoin

In an unprecedented move, El Salvador has become the first country to accept bitcoin as legal tender.

In another unprecedented move, the governor of Texas is jumping on the bitcoin bandwagon.

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On the negative side, China is continuing to crack down on bitcoin by blocking cryptocurrency accounts on Weibo.  Weibo is like Twitter in the United States.

Momo Crowd And Smart Money In Stocks

The momo crowd is 🔒 (To see the locked content, please take a 30 day free trial)  stocks in the early trade.  Smart money is 🔒.

Gold

The momo crowd is 🔒 gold in the early trade.  Smart money is🔒.

For longer-term, please see gold and silver ratings.

Oil

The momo crowd is 🔒 oil in the early trade.  Smart money is 🔒.

For longer-term, please see oil ratings.

Markets

Our very, very short-term early stock market indicator is 🔒.  This indicator, with a great track record, is popular among long term investors to stay in tune with the market and among short term traders to independently undertake quick trades.

Interest rates are ticking up and bonds are ticking down.

The dollar is weaker.

Trading futures is not recommended for most investors. The purpose of providing this information is to give an indication of the premarket activity that usually guides the activity when the market opens.

Gold futures are at $1892, silver futures are at $27.83, and oil futures are $69.41.

S&P 500 futures resistance levels are 4318 and 4400: support levels are4200, 4000 and 3950.

DJIA futures are up 66  points.

Protection Bands and What To Do Now?

It is important for investors to look ahead and not in the rearview mirror.

Consider continuing to hold existing positions. Based on individual risk preference, on dips, consider holding 🔒 in cash or treasury bills or short-term bond funds or allocated to short-term tactical trades and short to medium-term hedges of 🔒 and short term hedges of 🔒. This is a good way to protect yourself and participate in the upside at the same time.

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You can determine your protection bands by adding cash to hedges.  The high band of the protection is appropriate for those who are older or conservative. The low band of the protection is appropriate for those who are younger or aggressive.  If you do not hedge, total cash level should be more than stated above but significantly less than cash plus hedges.

It is worth reminding that you cannot take advantage of new upcoming opportunities if you are not holding enough cash.  When adjusting hedge levels, consider adjusting partial stop quantities for stock positions (non ETF); consider using wider stops on remaining quantities and also allowing more room for high beta stocks.  High beta stocks are the ones that move more than the market.