BMO EQUAL WEIGHT BANKS INDEX ETF (ZEB.TO)

(A Top Pick Sept 21/12. Up 9.74%.) This one will still go higher. The extra shot that will keep the banks working higher is if the rates start to edge a bit higher.

If you like this sector, this is a good way to go. He is currently slightly underweight banks.

Buy the sector when it makes sense. Get them equally weighted. He is a big fan of equal weighting.

(A Top Pick Oct 31/12. Up 4.82%.) He was in this basically since the beginning of October. This one has 2 seasonal positions and he sold his initial position on December 31. Stepped back in Jan 23^rd but it then broke its upward trend line shortly after and he sold his position.

Banks. Be diversified. This is exposure to the big 6 banks. You get the average dividend for the group 4%+. Be patient with new money. Start to nibble only. Canadian banks could pull back just a little bit more.

Canadian bank stocks have a tendency to move higher from January into February but after you get past the end of February, the sector tends to underperform. This ETF is underperforming and trending down and is below its 20 day moving average. This would be a time to take profits. There are usually 2 periods for the banks. From around October through until February is the best time but January to February is the best for seasonal strength.

(Top Pick Oct 5/12, Up 7.83%) Loves the formation. He sold about 2 or 3 weeks ago. Sees some weakness in the banks right now – just starting to happen.

This is equal weight banks, which is really the health of the financial services sector, specifically banks. Cdn banks remain sound.

Canadian Banks: We are at a 52 week high for a lot of the banks so it is not a great time to put new money in. But if we grind higher then the banks will participate. If you are interested in protecting downside and there is a risk of downside in the next two months, then wait for the correction to get in.

Is this a good ETF to play banks or would you recommend a single bank? He has owned this one in the past but is now moving away from Canadian banks. If you want to be in Canadian banks, there is nothing wrong with that and you might consider iShares S&P/TSX Capped Financials (XFN-T). Individually, the 2 banks that you would want to own are Bank of Nova Scotia (BNS-T) and TD (TD-T) because they have game plans.

(A Top Pick Oct 5/12. Up 1.92%.) Got sold out at $18.10. Banks tend to peak out in the 4^th quarter of earnings season and then there tends to be a bit of a weakness into the new year.

Seasonality for banks is different in Canada than it is in the US. US banks year end is December 31 and ours is right now. From October 10 to December 31, on average, this has gone up about 5.5% about 86% of the time.

(Top Pick Nov 4/11, Up 13.56%) Still likes it but is transitioning to ZWB-T (covered call version) because he likes the income stream.

(A Top Pick Aug 17/12. Up 2.88%.) Banks in general had made a beautiful bottoming formation. He sees $18-$19. You are also earning almost a 3% dividend. Seasonality is good until around the end of the year.

Good time seasonably for the banks. Chart shows a good strong trend line but there is a little bit of noise at around $18. You’ll see a bit of consolidation around $18-$19 so start watching it at that time with $19 being a Sell trigger.