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Markets To Obama: Where's The Tax Cut?

Some traders disappointed in Obama speech, but don't kid yourself. While Obama said a net tax cut is "part and parcel of what is needed for stimulus," he also said he was weighing whether to let the Bush tax cuts expire.

The markets may have been a bit disappointed with this; they want the President-elect to unequivocally state there will be a tax cut.

But don't kid yourself; selling into rallies, particularly selling into news events, has been a successful strategy this year, almost regardless of what is said.

The S&P 500 rallied about 11 percent from its close Thursday to its high today, which came just as the President-elect approached the podium.

In other words, they were selling the news even before he got to the Q and A.

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