DC Lite #225

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1. Profits vs. inflation. "Rising corporate profits have been a key driver of US inflation, according to Bloomberg."

2. Tax Cuts & Jobs Act. "Many provisions are set to expire in 2025. If TCJA extensions aren’t passed, individual tax rates would revert 1-4% higher to pre-2018 levels, the small business tax deduction would end, and the individual standard deduction would fall. This could represent the largest tax hike in history."

3. BTC momentum thrust. "Bitcoin is making a rare momentum thrust. Specifically, the 120-day Williams%R indicator has made a full oscillation from 'oversold' to 'overbought'. The last two times this happened, price rallied +50% and +100% in a few months."

See: Cubic Analytics

4. New highs. On Monday, “the net percentage of S&P 500 members hitting 52-week highs reached the highest level (22%) since March ... Forward returns for the S&P 500 have consistently been positive after strong readings in net new highs.”

5. SPX quality. "Do investors realize how 'high quality' the S&P 500 index has become? S&P 500 companies possess outstanding unit growth prospects, extremely healthy financial strength, and very ample liquidity."

See: