Don't get burned by the weather! The weather in much of the US has been a month or two ahead of the calendar in terms of average temperatures.
Strategies
The fundamental outlook is positive, providing good potential for long-term investors, even though the low level cannot be sustained for long.
Some say manufacturing in America is going the way of the Edsel, but Nucor's (NUE) dedicated team of employees might take exception to that premise.
The Opportunistic Arbitrage model gained a solid 21.4% in February versus 4.1% for the benchmark S&P 500.
Currently, short-term VIX futures are experiencing rolling costs (first to second month futures) greater than 10%, which is working in favor of my short iPath S&P 500 VIX short-term fund (VXX) position.
Earnings came out for Frontier Communications FTR on February 16, and the company reduced its dividend down to $0 .10 per share, helping them reduce debt, improve leverage and to put cash towards investing in their network.
After the huge amount of volatility for most of 2011, January and February have been much calmer. Volatility has been down substantially.
My approach in the down cycle is to short stocks which have run up for a while with weak fundamentals and showing a reversal pattern.