Market All Rosy for 2013?
Never mind that Rep. Boehner's "Plan B" is barely a deal, just an offer to raise taxes on those making over $1 million with a few spending cuts thrown in. Hardly a Grand Bargain. (Read more: White House Rejects Boehner's Backup Plan)
Never mind that that the news is all negative on the fiscal cliff today, that Senate Majority Leader Harry Reid said this afternoon that "Plan B" is "walking away" from serious negotiations, that House Republicans were threatening to quit serious talks, that Boehner's proposal will not pass the Senate. (Read more: 'Fiscal Cliff' Plans: How Close Are They?)
The markets are just barely off their highs. Two-month highs on the Dow and S&P 500. Bonds yields are up, again.
Elsewhere: what's up with gold? The market's indifference to the headlines isn't the only screwy thing today...the dollar is down, but gold is getting killed, again. (Read more: Gold Prices Plunge Amid 'Fiscal Cliff' Talks)
If gold (and bonds) are a haven from economic uncertainty, the markets seem to be telegraphing a more stable 2013.
Or maybe traders are just unwinding a particularly profitable pair trade. But what? Short euro, go long gold?