iShares Russell 2000 ETF (IWM)

IWM or OUSM or IJR? Granddaddy is IWM, which has already had a pretty good year. For small cap in the US, go with this because it has liquidity. You can use the options market if you want something fancier. Be careful, as this are subject to US estate taxes. In Canada, use an active manager in this space. Canadian small-cap needs an active manager, rather than an ETF.

(A Top Pick Dec 19/17, Up 0.39%) The market hasn’t favoured them and so he exited in January. The weaker US$ favours the large caps.

He likes this. A smaller cap rather than the usual large cap. He would certainly buy this.

This is the time period where small caps stocks tends to go up until the beginning of March. A lot of it is from tax loss selling that helps drive it up. The small cap sector tends to perform well at this time.

Buy iShares Russell 2000 March 2018 150 calls. This is a play on small US stocks. This index is the one which will benefit the most from the tax structure as it is currently laid out. The reason he is buying a Call is that you are going to get $6 for a call option with a strike Price of 150. The ETF is trading at about $154, so you are buying an "in the money" Call, and you are going to pay about $6 for it. You may get a dip in this index when the tax bill goes through. He wouldn't worry too much about that. If you want to wait for it, that's okay. You might want to buy half now and the other half then.

(Top Pick Dec 13/16, Up 1.42%) It has not done much since the start of the seasonal period. He exited because he has not seen the relative strength. The seasonal period ends March 7^th.

Analysts are expecting about 80% earnings growth over the next year in the Russell 2000. There is room for disappointment. He initiated a short position on it as part of a long/short strategy.

(A Top Pick Sept 23/15. Up 22.66%.) He tends to like mid-cap’s better than small caps, and has switched from this to the mid-cap’s.

This is another beneficiary from the Trump elect presidency, because they are domestically focused. The chart shows that a run up has taken place, which has happened early. Usually small caps do really well from December 19 until March 7. He still thinks there is room to go.

XSU-T and IWM-T. They broke down in September. They should find support just below here. If it breaks down below that then it has to find the next support level.

(A Top Pick Dec 15/15. Down 8.46%.) Typically, small caps start mid December and run to March. The market fell apart in the new year, and everybody ran to the big blue chips. He exited his position in mid-January. It is now starting to show some strength again relative to the market. There is only a month left for its seasonal trade though.

(A Top Pick Nov 30/15. Down 18.55%.) This was a disaster. What normally happens from the beginning of December through to the 1^st week of March, is that the small caps outperform the big caps. It didn’t happen this year.

Usually the small-mid cap space has a pretty good run. It didn’t quite materialize. The drop in early December was pretty big. Mid-small-cap tends to do well in to about early February.