STTG Market Recap December 30, 2013

Markets continue to correct overbought conditions via time rather than price.   With one more session to go the S&P 500 is hanging around a 29% return for the year, the best since 1997.  The S&P 500 fell 0.02% and the NASDAQ 0.06%.  The National Association of Realtors reported signed contracts to buy existing homes rose slightly in November, halting a five month negative streak. Economists expected signed contracts to climb 1 percent.

After breaking above its year long channel for the first time all year last Thursday we've had two very minor corrective days in the NASDAQ.

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The slightly disappointing news in the housing sector helped push the year on 10 year Treasuries back down from the 3% level.  This has been the line in the sand of late and it will be interesting to see if rates jump that area in early 2014.

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Social media stocks continues to come in as they gave back some of their tremendous rallies in December.

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Those speculative juices went instead to the solar stocks who have had some big runs in 2013.

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Did you know France just passed a 75% tax rate on companies who pay execs >$1M?

France's controversial "millionaire tax" is set to become law, allowing the government to levy a 75% tax on companies that pay salaries in excess of €1 million.  The tax was approved by France's constitutional council on Sunday after an earlier version was deemed unconstitutional last year.  It had originally been created as a tax on individuals, but was eventually shifted to a tax on companies paying high annual salaries.  According to the constitutional council, employers must pay the levy on salaries exceeding €1 million ($1.4 million) a year. The tax will apply for two years -- 2013 and 2014 -- and will not be allowed to surpass 5% of a company's annual revenue.