Protecting the SPX Relationship Based Trading

Good Morning,
I was updating the IBFX social site and my "thelocalstake" posting and stressed how inter-market relationships can get you into trades early.
Before I get to it, fundamentally, we have a slew of data, including the FOMC. Remember, there "new" transparency operating stance. By the way, they said they wanted to be more transparent back in 2000-2003. Are they now going to tell us that they get data well before us and that is why they make the decisions that they do?
Anyway, I have been saying that 1350 could be a multi-year high ever since we set that high last summer. I expected the world calamities that are happening and a very, very slow economic recovery. No on expected the kind of coordinated bailouts that are occurring - and as the Fed is being transparent will CONTINUE TO OCCUR. You must understand this, the Fed and other Central Banks are still in play and that makes for low volatility, rising equity trade scenarios. Trade accordingly!!!
To the inter-market relationship chart:



Check out the USD/CAD - support occurs when USO gets overbought and thus oil and for the most part, equity prices. It has acted as a nice hedge to the portfolio and even if the portfolio still goes higher, for whatever reason, oil, USO haven't been able to and obviously that turn drives the USD to find strength against the CAD. As we all know, anything can happen, so sound trading plans, and proper risk to reward setups with stops and target orders are necessary. Never, ever trade without a plan or stops in place!!

The point is, look how often this trade happens - once per month. Between this relationship and some other regular trades you rely on (see Buffalo Bounce and its success about once per week), that ends up being a very, very strong trading month.

Volatility will return, it is just a matter of when. Stay solvent until it does by expanding your horizons and doing research. Now is the time to research and find relationships, NOT to overtrade.
Link to free IBFX webinar.

Happy Trading and Be Environmentally Cool
Coach Brian