Oil/Energy Blue Chip End of Year Update

Oil/Energy

Chevron Symbol: CVX

http://en.wikipedia.org/wiki/Chevron_Corporation

Rationale: Chevron has reserves, and a long-term business plan that can environmentally support change, and still profitable

Guidance:

First bought 12/30/08 and ongoing on dips. Average cost 56.40.

Use a 25% trailing stop loss.

Up to 79.64 11/30/09

Exxon Mobil Symbol: XOM

http://en.wikipedia.org/wiki/ExxonMobil

Rationale: Exxon is the big ugly. It mirrors the oil distribution/refinery market well

Guidance:

Most of our long-term traders have owned this since 2007, bought at averages of 50.00, and have doubled their money several times.

We now recommend new buys at any price under $60.00. We’re far from that now, but oil will drop.

United States Oil Fund Symbol: USO

http://www.reuters.com/finance/stocks/overview?rpc=66&symbol=USO

Rationale: This ETF holds a variety of oil and oil transport issues, and we often trade as a put or call.

Guidance: Not currently owned, but tracked. We see oil trading in a range between $65.00 and $100.00 a barrel for an extended period. At $100.00 oil becomes supply and demand come into full force.

ITC Holdings, Inc Symbol: ITC

http://www.itctransco.com/

Rationale: Really study the website and learn the transmission service this company leads. We think they are the future, and we are trading for the long term.

Guidance: We first bought ITC 4/28/9 at 44.08 and have lowered our price a bit with a second buy on a dip to 43.40

ITC is holding steady, and doesn’t seem to yet be noticed by institutional investors.

Study this stock. We think they are on to something, sound, and will blossom as a break out stock as they become noticed. Buy.

Use a 25% trailing stop loss.

Van Eck Market Vestors Coal ETF Symbol: KOL

http://www.vaneck.com/index.cfm?cat=3192&tkr=KOL

Rationale: This ETF invests in over 50% of the largest coal producers across the world, and has a low expense ratio. It’s the perfect way to “play” Coal”.

Guidance: We use this as an option trade or an ETF at various times. No current position is held or recommended

Bonds-Blue Chip Holdings End of Year Update

Blue Chip Bonds

Aberdeen Asia Pacific Fund Symbol: FAX

The Fund is managed by Aberdeen Asset Management Asia Limited and advised by Aberdeen Asset Management Limited. The Fund's shares trade on the NYSE AMEX under the symbol "FAX".

Rationale; In order to achieve its investment objective, the Company may invest up to 80% of its total assets in "Asian debt securities", and may be denominated in an Asian Country currency or in Australian, New Zealand or U.S. dollars. At least 20% of the Company's total assets will be invested in "Australian debt securities. This is a closed end Fund, at a 9% discount, and currently paying dividends of .47 a share per month thru June of this year. Safe international income, at a discount. Long-term hold

Guidance: Long term hold. Pays strong dividend. No stop loss

Treasury Inflation Protected Securities Symbol: TIPS

http://www.treasurydirect.gov/indiv/products/prod_tips_glance.htm

Rationale: Inflation bonds are a great hedge against both inflation, and fear of future inflation. These are CASH alternatives. We currently hold.

Guidance: Buy

Barclays 20+ Year Treasuries Symbol: TLT

http://us.ishares.com/product_info/fund/overview/TLT.htm?c=JAC01&gclid=CLCe94OF9JsCFRJ4xgod_Gxf_w

Proshares Ultra short 20+ Year Treasuries Symbol: TBT

http://www.proshares.com/funds/tbt.html

Rationale: U.S. Treasuries, short and Long: TIPS are inflation protectors. TLT is a long term Treasury, so a deflation protector. TBT plays long-term treasuries short.

We use all three instruments as a large part of our CASH porfolio.

Eaton Vance Senior Floating Rate Trust Symbol: EFR

http://individuals.eatonvance.com/fundinforedesign/fundspecific.asp?Type=closedend&fund=EFR

Rationale: This is a senior secured floating rate bond fund that ranks well for inflation with gold, real estate, and TIPS. This trust is currently trading at a discount, and has a yield of 6.6%

Guidance: We bought on 9/28/09 at 13.15. Strong yield, and a good cash alternative to prices near 15.50.

I Shares Barclays 7-10 year Treasury Bond ETF Symbol: IEF

www.ishares.com

Rationale: This ladders our portfolio now completely, with money in early October 2009 now moving to shorter-term treasuries

Guidance: Adding to our overall Treasury portfolio we replace shorter term Treasuries, and sell longer term TLT as the market shifts, keeping a base in Inflation Bonds, TIPS and now EFR.