Congress always swings the pendulum too far in the opposite direction in reaction to these sorts of things.

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As long as the reaction is strong enough in one direction or the other, a straddle offers a trader the opportunity to profit.

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As Congresswoman Giffords is a Democrat, fresh off a highly combative and nasty congressional race with a Tea Party backed candidate, the first reaction of many liberals will be to point a finger in the direction of the Tea Party.

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While this recent run by the euro may be a bit overdone and price has stalled slightly ahead of the 1.2500 level, traders need to be very wary of this pair as the reaction to stress tests, positive or negative, could send it rocketing in either direction.

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