SPDR S&P 500 ETF (SPY)

Expecting a bit of weakness this summer and we are seeing stretched valuations. Nothing is cheap at the present so you want to avoid the broad markets. This one is trading at about a 17 multiple. Look for things with a lower multiple such as consumer staples or utilities which are hovering around 14.

There are 2 sweet spots a year for the US market, particularly for this stock. One period is from the end of October until the end of December, the Christmas buying season. The other one is from the end of February right through until the end of April, the spring buying season. We have just entered into this period right now. You would own this through until about the 1^st week in May and that is when you will take some profits.

Search messenger kit. Allows it to be done inside of Blackberry messenger.

(A Top Pick Nov 6/12. Up 20.48%.) Seasonal strength is from Oct 28, on average to May 5. Last year it did very well.

You could be a buyer here, but he would watch it like a hawk.

(A Top Pick Oct 29/12. Up 31.08%.) Bought a March 1 41 Straddle at $12.68 with a Call at $6 and a Put at $6.68.

Your opinion of the Iron Condor Option strategy? To reverse the Straddle (see Past Picks) instead of buying a Call and a Put, you sell a Call and Put. Rather than saying that the underlying security is going to breach either end of the trading range, it is probably going to stay within that trading range. To do that, you sell a Call above where the stock is trading now and you sell a Put below where the stock is trading now and that becomes your trading channel. The risk is if the stock pops or drops. If it pops through the top you have unlimited risk. An Iron Condor is where you buy another Call further up and another Put further down, which is hedging your position. If you can get the 4 trades on at a reasonable commission, fine but this can eat you alive with costs.

Some recent index changes are putting in some better companies into the US indexes and this could benefit index ETFs. SH-N you could hold if the market fails to break August highs.

(A Top Pick July 19/12. Position expired worthless. Loss of 100%.) Bear Call Spread. Selling $140 September Calls and Buying the $145 September Calls.

The original ETF. It is almost as big as RY and BNS combined. Any other ETF trying to track the S&P is secondary to this one. If you have an investment horizon of more than 3 years you should be in stocks.

Short? He is still long here so the market has done nothing bad yet. He took half his position off on Friday. If it breaks the trend line (retracing back to it) then buy a ‘bear’ ETF on the S&P, rather than short this one. We need to see improvement in the economy to see this go up for any other reason than zero interest rates.

Buy Feb $143 Calls / Sell Feb $143 Puts. This is a straddle. Betting market will move up or down due to the fiscal cliff.

Doesn’t actually own this one, but owns the subsectors and they are all outperforming this one and starting to show positive seasonality.

Iron condor options strategy? These are just 2 Spreads. You have a Bear Call Spread on the top end and a Bull Put Spread on the bottom end and you are really trying to frame a trading range for the underlying security. If the market stays within that trading range, you profit. This limits your risk. Very complicated strategy. Expensive with 4 commissions in and 4 commissions out. (See Top Picks.)

Buy March 141 Straddle at $12.68 with a Call at $6 and a Put at $6.68. This will profit if the market moves significantly one way or the other and he would take a hard look at actively managing this straddle after you put it on, because the straddles are relatively cheap right now and there are ways to actively manage this.