It is early but just making note that we are not sure we have ever seen a bit ago DOW up 285, the TRANSPORTS up 315, the NASDAQ down 12, the NDX down 25. Our theme of “changing of the guard” continues to play out. We warned you to the negative action in growth the past week with the DOW up over 600 points with the NASDAQ down. Normally, we would tell you divergences like this are not good…but we will just keep it at TRANSPORTS, RETAIL, DOW-TYPES, FINANCIALS, MANAGED CARE, HOUSING and a little dose of COMMODITY-types are the place to be…and would continue to cast a wary eye at everything growth. Maybe this is just value catching up…or this is high tax companies who benefit while low tax companies that do not not from the tax bill.. Nevertheless, pay attention.We told you this morning we need to watch a “sell the news” scenario. So far, it is just the growth areas.
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    R.McMullen says:

    Hi Gary-
    I happened to hear on the financial news that the new TaxRelief bill includes a change in the way capital gains will be treated on the sale of a home..
    Presently, if one lives in their home over 2 years, one does
    not have to pay capital gains on it..
    ***But the new version could change to: either a 5yr or a 8yr rule (depending on which version passes : Senate or House passes) to live in the home to qualify for $0 Capital Gain exemption!!! Not much in the news about it. Real estate mkt could tank?! Rob
    Not much being said about it..

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