Analysis: Traders hedge bets as budget talks turn to bluster

http://www.reuters.com/article/2012/12/20/us-usa-fiscal-hedge-idUSBRE8BJ0VV20121220

Them stock traders don't know what the heck to do - mostly because no one REALLY knows what will happen with the Fiscal Cliff.  Part of the problem, if those in the stock market are feeling cautious about this, one can certainly bet businesses are executing their own "loss preventive" measures.  Also, the stock market seems to be a bit overly-bullish given the current economic conditions.  Then again, I sensed this a year ago.  Consider this, the peak stock value for Dow Jones was just a tad over 14, 000 - about 14, 200 or so.  Right now, most economic data suggests our Labor Participation Rate is still well below the 2010 levels or so, hovering some where around the 1980's rates.  This suggests markedly less people are employed and thereby significantly less economic activity or positive production.  So, how is the stock market climbing as it is with the labor participation rate and the unemployment level still a bit high.  Remember, the unemployment rate only includes those in the labor market - so we are still experiencing "aberrative" data since only those looking for jobs are counted as unemployed.