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Year End

December 30, 2011 – 6:10 pm

No economic data is on tap today and this week has been light not only in statistics but there was little worry coming out of Europe. This resulted in a very light trading week which is normal for the week between Christmas and New Year. It was a pleasant relief.

Many traders leave town during this period but that can produce more volatility. That didn’t happen this year. As a result the market was flat for the week and it was flat for the year.

2012 will bring some new challenges but the old ones are still with us mostly concerning Europe, but also housing here in the U.S, and the slowing growth out of Asia. This is also a presidential election year so the market will be watching that as well.

On the positive side the U.S. economy and corporations are gaining strength. It could be a lot better but as the Fed keeps liquidity high with low interest rates the environment is conducive for growth. The wild card will be what Europe does. They badly need a catalyst to boost their economy, but unlike our FED I am not sure they have the facility to do that. They will be a drag on our market and economy. It is the degree that is hard to gauge. At the very least 2012 will be, once again, volatile.

Good Trading
Steve Peasley

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