Warren Buffett let the cat out of the bag today on why the rich and powerful are not selling stocks. Warren Buffett told CNBC today that he’s not selling and booking profits in his positions until he finds out what the capital gains tax rate will be under a Trump tax cut. Think about it. The difference could be millions of dollars in lost profit if stocks are sold before the end of the year and before Trump’s tax cut hits in 2018.

All the rich and powerful are probably doing the same thing Buffett is doing which is why the VIX is now under $10. That explains why my UVXY scalp trade went bust a couple of weeks ago. If you don’t know about how to scalp the market, I did a stock trading lesson on shorting the market here.

The delay in Trump’s tax cut has created a ultra-low volatility “wait-and-see” market.

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