Boy, the shorts are fearless here and the longs scared of their own shadows. The president and the Speaker said many right things. I am as cynical as anyone. I understand that the Speaker may not be in control of his own party. I recognize that the president has the upper hand after his big reelection.
But I do think that the Speaker did say that the Republicans would allow some revenue increases. And the president made the point that someone has to stick up for the 98%, and help them via taxes.
Hmmm, 98%. Tough thing to run against if you are a Republican.
There's common ground. That matters.
Still, I think the market doesn't know what to think and is tired of being fooled. Plus, the shorts feel that they can do whatever they want and not get hurt.
Sometimes you have to step back and ask if they are closer than you thought or further than you thought.
I thought they were closer, which means that the upside may not be chimerical.
The shorts are being too glib and the longs too skittish.