Obama Tax Deal Sets the Bull Running

U.S. President Barack Obama's tax deal has yet to pass Congress, but the compromise - hatched as an appeasement to Republican opposition - already has had an effect on the currency and stock markets. What's more is the deal looks as though it could offer a significant impetus for the U.S. economy as we move into 2011. What has happened in the political arena over the past month has been magnificent theater. I don't believe in coincidences, so we have to try to understand what is being staged. Consider the following: Just weeks ago we had the stunning compromise by Irish officials with their new European overlords . Then the Standard & Poor's 500 Index reversed at the well supported 1,175-level and its 50-day average. Then came a positive reaction to a weak jobs report. Then U.S. Federal Reserve Chairman Ben Bernanke went on "60 Minutes" to explain the Fed's monetary program. And finally President Obama went on television to announce his tax compromise. What's the play? Here's a guess.