SPX Flat For The Year

Good Morning,

As of now, the SPX is basically flat for the year. Think about everything that the markets digested this year and how we have hung in there. Will there be more to digest in 2012? Absolutely. Will the markets take it in stride and rally higher? All indications are pointing that way. But if not, are you in a position to profit from it? Even if you are an investor, you MUST be in a position to profit from sideways or bear markets as your returns may not keep pace with inflationary pressures.

No I am not talking about inflation that the Fed looks at. I am looking at potential cuts in salary, maybe even layoffs and add in utilty rate increases, health benefit increases (employer benefit decreases), the potential for food price increases, etc...

I hope the markets do keep rallying and if so, then I may lag the benchmark by just a bit, but I will sleep better at night knowing that when the markets do go sideways or down (and the reality is that they will at some point), the benchmark will suffer versus those employing protection strategies and income generating strategies.

Basically, understanding technical analysis and how the financial markets inter-relate is key. Forex can provide a great day trading vehicle, but did you know it can also act as a hedge against your portfolio? Options are such a dirty word, but as my clients know, they are an unbelievable vehicle for three things:

1. income generationg in trading accounts, IRA's and 401k's

2. portfolio protection

3. allows smaller accounts to participate in stock market movement in order to grow the account size

4. allows you to get paid to purchase stocks at your fair value levels

So I ask you: "what type of returns do you want to receive this year"? Maybe your New Year's resolution is to understand what drives the markets and how to profit from them. Again, regardless of your investing timeframe, the markets will provide volatility and volatility provides opportunity.

These markets are providing returns you can't get anywhere else (see real estate bonds, etc...) Find what markets suits you best given your individual situation and Seize it!

Happy Trading and Be Environmentally Cool

Coach Brian

Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.