SPDR Consumer Staples ETF (XLP)

(Top Pick May 26’14, Up 3.21%) The Canadian dollar is peaking right now so this one will get a little boost.

(A Top Pick April 16/14. Up 2.78%.) This is a classic seasonal play. Staples are defensive and do tend to move up over the summer. You would keep this until Sept/Oct.

Since the Russell and NASDAQ broke down, attention from the investors has sort of migrated towards the large cap and this sort of fits that bill. If you have a big move on the downside, it is a bit more systemic, but otherwise the seasonal goes from about April to October.

Consumer staples. More defensive and money rotates into those in the summer. Investors start to become more conservative. If the economy slows down you don’t get the variability on earnings. He is comfortable with the PE ratio.

Consumer staples ETF. Prefers US for these. Would be wary of the sector, however.

This is a seasonal play. Staples tend to do better over the summer. Also, from a technical perspective, it doesn’t look too bad. Chart is just starting to see a breakout right now of the highs of 2013. Thinks this will be a good position to hold for the next 3-6 months.

Started to move up on a shorter-term view and held in pretty good today. This is a defensive theme. The market is telling you that the risk/reward for these names is pretty good on a monthly basis. On a longer-term basis it is still ranking near the bottom and it still had a positive 8% return over the last year. Chart shows support at around $42. Over the next year, no matter what happens with the macro picture, this will be a core investment holding for at least the next year.

(Top Pick Feb 28/13, Up 14.57%) Still likes it.

(A Top Pick Feb 28/13. Up 10.26%.) You have to have some consumer staples stocks in a portfolio. These are companies where we use their products every day.

Generally, when he buys an ETF, he is buying the sector. There were no problems in the sector, with the odd exception, and the uptrend is still in place. Chart shows a consolidation through most of this year, followed by a breakout. This is a sector that is emerging after a relatively benign summer. He bought on the breakout.

(A Top Pick May 1/13. Up 1.63%.) This is a sector that is a core sector for the summertime. Consumer Staples tend to do well at that time. Had its big run at the beginning of the year so it is lagging a little bit behind the market right now but is still a good sector to be in over the next few months.

(A Top Pick. (BNN shows July 3/12 but our records indicate Aug 3/12.) Up 16.94%.) Right now he would not be buying this as he would be more interested in US growth oriented.

This is a strong trade for the summer months as people are looking to be defensive. Good place to be hiding for the summer.

Historically he has sold the Consumer Discretionary (XLY-N) right around this time and has gone long this one. He hasn’t made that decision as yet because this year this one is not underperforming as usual.

Defensive ETF. Products that are used every day. Easy for companies to raise prices. Emerging markets will have the same wants and needs as we have so these companies find it easy to expand overseas.