How the Upcoming Tax Bill Vote Could Shift Market Momentum

by Chris Pulver | Jun 10, 2025

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The market continues to climb that proverbial wall of worry, but the upcoming tax bill vote could provide the next real catalyst — for better or worse.

Right now, there are a lot of potential “whys” that could trigger a spike in volatility. One of them is whether Congress can pass the tax bill. If the vote fails, the market might finally get the jolt that a lot of traders have been waiting on.

It’s not just about politics. If this bill doesn’t pass the Senate, there’s a legitimate risk chain reaction to consider — would that create debt ceiling issues? Could it lead to a technical default?

Does that trigger more political drama on social media? Those outcomes aren’t in our control, but they’re worth pricing in.

For now, I’m raising cash from trades I’ve closed and keeping it ready. If the market suddenly gets an adverse reaction from the tax bill news, I want the flexibility to deploy capital quickly.

I don’t think this market derails easily, though. We’ve already seen it rally through plenty of uncertainty. Earnings remain decent, employment data is steady, and inflation, while sticky, hasn’t stopped the melt-up so far.

Still, events like this tax bill vote can temporarily change the tone — and I want to be prepared for that.

Positioning for Volatility if Needed

I’ve been clear about my approach…

If volatility spikes, I want to have trades ready to take advantage of it. That means keeping plenty of cash on hand and deploying it only when setups I like appear.

I’m not going to guess whether this bill passes or fails. But if the outcome triggers a market move, I’ll be ready. This is a moment where traders need to be flexible — not stubborn.

If the tax bill passes smoothly, that’s likely another bullish catalyst that keeps things grinding higher. If it doesn’t, that’s when I’ll be looking to put some of this cash to work in defined-risk trades.

At the end of the day, the market will do what it wants. My job is to stay nimble and make sure I’m positioned to take advantage of whatever comes next.

I’ll see you in the markets.

Chris Pulver

Chris Pulver Trading

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