The stock market has tumbled in recent sessions, giving many a sense that its peaks have come and gone for this year. Yet it's worth noting that the major averages are still within 5% to 6% of their yearly highs, so there is ample downside to be had before we can declare an official market correction (which is a drop of 10% or more).

I cautioned about a market pullback on Oct. 5 and the concerns I raised haven't even fully played out. That said, values are beginning to emerge and signs are pointing to a brighter picture in 2013 -- once we get past the landmines that lay before us in 2012.

Yet even if the market trends lower and we start to see solid value plays emerge, it's important to tread cautiously. Some investors may inadvertently stumble across some trip wires and bring this market far lower.