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Yes they can

Finally US politicians proved to be as down to earth as markets expected them to be. With the announced last minute deal they avoided the default IF the vote will pass the 2 houses as it may face tougher opposition in the House of Representatives where both conservative Tea Party supporters and liberal lawmakers have expressed dissatisfaction with the agreement. Further, the deal wld not solve the downgrade issue or neither provides any answers how to deal with the mountain of debt.
But these are negligibilities markets didn t care about in a 1st reaction as they only saw what they wanted to see. Gold fell, the dollar rose, equities rallied, Vol collapsed…. All in all: relief rally as predicted!
BUT this relief will be only short lived as neither the debt problem is solved in Europe nor the US and global economy is cooling down further as underscored by the US eco data from Friday and China PMI which dips to a 28 month low. Rising hopes of an easing in monetary policy was immediately restrained by the PBoC, which that price pressures would be in danger of escalating if its relaxed its policy.
We count on a 2nd bounce up after the vote is confirmed and see this as a nice opportunity to re-enter overwriting positions. Note that short term Vol in Europe is holding firm so far, expect it to drop after the vote!