There was considerable event risk this past trading session, but the market did not respond as expected. The speculative-favored S&P 500 continued its climb despite signs that the stand off on the Fiscal Cliff was growing heated. At the same time, the safe-haven US dollar managed to gain traction against some of its higher risk profile countparts. The sparks are flying and volatility is picking up, but speculative bearings remain mixed. That creates a dangerous trading environment. In today's video, we discuss what this disconnect means for our trading as well as why stand outs (like the yen crosses) will struggle without the bigger theme carrying a trend.

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