How Spreads Can Beat Straight-Up Calls
So here we stand peering over the fiscal cliff. You can see for miles and miles up here. Unfortunately, today still means nothing. Any last-minute "deal" is going to be last-minute and half-cocked. I would guess it would bring a quick relief rally with a few quick long trade opportunities in equities. However, I suspect it will get faded about a week later after the details of the deal come out.
The current seats in Washington don't have the conviction to actually do what needs to get done. We are going to play the eternal game of kicking the can, but the game can't be played forever. It will merely be played until the vast majority of the current politicians no longer have to worry about who the losers are, since they will be some of the few winners from this mess. Politics aren't my thing, and what we are seeing now in Washington, D.C., is the very reason for it....657 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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