May 28, 2010 – Enjoy the Dollar Rally While it Lasts

Featured Trades: (LONG TERM DOLLAR TREND) 2) Enjoy the Dollar Rally While it Lasts. Any trader will tell you the trend is your friend, and the overwhelming direction for the US dollar for the last 220 years has been down. Our first Treasury Secretary, Alexander Hamilton, found himself constantly embroiled in sex scandals. Take a ten dollar bill out of your wallet … [Read more...]

May 28, 2010 – A Memorial Day Tribute

Featured Trades: (A MEMORIAL DAY TRIBUTE) 4) A Memorial Day Tribute. Monday is Memorial Day, and I'll be putting on my faded Marine Corp fatigues and railroad track bars and leading the town's veteran's parade. So I thought it would be a good day to tell you the story of my Uncle Mitch. Since job prospects for high school graduates in rural Pennsylvania … [Read more...]

May 26, 2010 – The Hard Truth About Residential Real Estate

Featured Trades: (RESIDENTIAL REAL ESTATE), (LEN), (PHM), (XHB)   1) The Hard Truth About Residential Real Estate. Anyone who believes that housing is on the rebound, and that now is the time to buy, should take a very hard look at the numbers I dredged up for my spring lecture and luncheon tour. There are 140 million personal residences in the US. Today, there … [Read more...]

May 26, 2010 – Who Said the Dollar Was Going Down?

Featured Trades: (SILVER DOLLARS) 3) Who Said the Dollar Was Going Down? I knew silver was doing well, but not that well! Possibly the oldest silver dollar in existence, a mint condition 1794 liberty dollar, sold at auction for $7.85 million last week, the highest price ever paid for a coin. The value of the silver in the coin is about $18. Some 1,578 of the … [Read more...]

May 26, 2010 – Silver Buffalo Update

Featured Trades: (SILVER BUFFALO) 4) Silver Buffalo Update. It seems like we have a lot of graduating relatives this year. The link I sent you to buy .999 silver buffalo coins yesterday sold out within the hour. If you are still interested in accumulating these sought after coins, please click here. … [Read more...]

May 25, 2010 – Make Your Next Killing in Africa

Featured Trades:  (AFRICA), (AFK), (GAF) 2)  Make Your Next Killing in Africa. Feel like investing in a state sponsor of terrorism? How about a country whose leaders have stolen $400 billion in the last decade and has seen 300 foreign workers kidnapped? Another country lost four wars in the last 40 years. Still interested? How about a country that suffers the world's … [Read more...]

May 25, 2010 – The Electric Car Stakes Heat Up

Featured Trades: (TESLA MOTORS S-1), (TM) 3) The Electric Car Stakes Heat Up. Civic boosters in Fremont, California were apoplectic with joy over the weekend on news that a new Tesla Motors-Toyota joint venture would build its all-electric 'S-model' there. The $50,000 Tesla sedan will be built at the old NUMMI plant, a Toyota-GM venture that produced Corollas. The ill … [Read more...]

May 25, 2010 – Looking for that Ultimate Graduation Gift?

Featured Trades: (SILVER BUFFALO) 4) Looking for that Ultimate Graduation Gift? I know many of you geezers are as old as me, or worse, which means you may have some graduation ceremonies to attend this month and next, and are wracking your brains for the appropriate gift. Rather than give that gas guzzling clunker in the back yard that no one wants, a copy of Alan … [Read more...]

May 24, 2010 – Welcome Back to Earth

Featured Trades: (AAPL), (GS), (YCS), (TBT)   1) Welcome Back to Earth. Thank you! Thank you, Mr. Market, for finally coming to your senses. It's about time that you kicked your ecstasy habit and quit listening to lemmings for your financial advice and started paying attention to those suspicious, odiferous lumps that have been swept under the carpet, even if the … [Read more...]

May 24, 2010 – Why I’m Not Buying Google on this Dip

Featured Trades:  (GOOG), (BIDU) 2)Why I'm Not Buying Google on this Dip. You would think that I'd be pounding the table getting you to buy the dominant Internet search engine after its shocking $160 (25%) fall this year, but you would be wrong. Basically, Google blew China, far and away the largest generator of world GDP growth for the next decade, and home of the … [Read more...]

May 24, 2010 – Welcome to Financial Reform Light

Featured Trades: (FINANCIAL REGULATION BILL) 3) Welcome to Financial Reform Light. Banking industry lobbyists were popping the Champaign bottles in Washington yesterday, as a greatly weakened and enfeebled financial reform bill stumbled across the finish line, coughing and wheezing all the way. It is, of course, a massive bill, which seems to leave no corner of the … [Read more...]

May 21, 2010 – Watch Out for the ‘Anti-Growth’ Trade!

  (SPECIAL 'MARGIN CALL' ISSUE) Featured Trades: (USO), (EEM), (SLV), (PPLT), (PALL), (JNK), (YCS), (FXE), (FXB), (FXA), (FXC), (VIX), (SPX) 1) Watch Out for the 'Anti-Growth' Trade! Now that most big hedge funds have completed their race to get neutral, they are holding raucous in-house debates over placing size bets on a double dip recession. This would … [Read more...]

May 21, 2010 – Recollections of a Marine

(SPECIAL 'MARGIN CALL' ISSUE) Featured Trades: (THE PACIFIC) 4) Recollections of a Marine. As the son of a Marine who served on Guadalcanal in 1942, I had an unusual childhood. The memories all came flooding back to me as the HBO program, The Pacific, came to its conclusion this week. Every scene in the ten hour series I had already heard about around … [Read more...]

May 20, 2010 – Keep a Sharp Eye on China for Market Direction

Featured Trades: (FXI), ($SSEC), (CYB) 1) Keep a Sharp Eye on China for Market Direction. My favorite canary in the coal mine for global capital markets has been singing loud and clear, and that song is increasingly sounding like a funeral dirge. The Chinese stock markets (FXI) have been rolling over like a fatally injured kung fu warrior, the Shanghai index now down … [Read more...]

May 20, 2010 – The Easy Money on the Euro Has Been Made

Featured Trades: (FXE) 2) The Easy Money on the Euro Has Been Made. I have been a conspicuous bear on the euro (FXE) all year, back when it was trading at $1.45 (click here for the call ). We have now hit my target of the low $1.20's, and the really easy money has been made. Overshoot territory now beckons. It seems the entire world, having passionately loved the … [Read more...]

May 20, 2010 – Meet the First Mass Market Car of the Future

Featured Trades: (NISSAN LEAF) 4) Meet the First Mass Market Car of the Future. I put my $99 deposit down to get my five door Nissan Leaf hatchback this December, which will be the world's first mass market, price competitive all-electric car. The vehicle will be entirely run by a 24 kilowatt hour lithium ion polymer battery. In a few months the company will send an … [Read more...]

May 19, 2010 – How Far will Gold Run?

SPECIAL HARD ASSET ISSUE Featured Trades: (GOLD), (GLD) 2) How Far will Gold Run? The good news is that you no longer have to be crazy to buy gold. Until recently, certifiable believers chasing the barbaric relic were driven by a host of urban legends and conspiracy theories, such as the imminent bankruptcy of the US Treasury, Fort Knox holding only titanium bars … [Read more...]

May 19, 2010 – Quote of the Day

'I think this is the most extraordinary collection of talent, of human knowledge, that has ever been gathered together at the White House with the possible exception of when Thomas Jefferson dined alone', said John F. Kennedy about our third president. … [Read more...]

May 18, 2010 – Where to Buy on the Dip

Featured Trades: (IAN BREMMER), (GOOG), (SPX), (EZU), (FXI), (FXE), (EWA), (EWC), (EWY), (EWT), (THD), (IDX), (EWS), (EWZ), (ECH), (EWW), (RSX) 1) Where to Buy on the Dip. There is a new war underway between two forms of capitalism. The traditional type is driven by the big global multinationals we all know and love which are being aggressively challenged by a new … [Read more...]

May 17, 2010 – The Mad Hedge Fund Trader Interviews Ian Bremmer of Eurasia Group on Hedge Fund Radio

Featured Trades: (IAN BREMMER), (GOOG), (EZU), (FXE), (FXI), (EWA), (EWC), (EWY), (EWT), (THD), (IDX), (EWS), (EWZ), (ECH), (EWW), (RSX) Where to Buy on the Dip. There is a new war underway between two forms of capitalism. The traditional type is driven by the big global multinationals we all know and love which are being aggressively challenged by a new form of state … [Read more...]

May 17, 2010 – The Real Cause of the ‘Flash Crash’

Featured Trades: (SPX), (YCS), (TBT) 1) The Real Cause of the 'Flash Crash.' When I boarded my plane in San Francisco on Thursday morning, May 6, the Dow was down an uncomfortable, but tolerable 150 points. When I arrived in New York that night I was greeted with headlines screaming 'CRASH: DOW PLUNGES 1,000.' I was not surprised. In a letter sent to my premium … [Read more...]

May 7, 2010 – There’s a Massive Global Risk Reversal Going on

Featured Trades: (GLOBAL RISK REVERSAL)   1) There's a Massive Global Risk Reversal Going on. The Gulfstream is fueled up, the flight plan filed, and my pilot is carping about missing our IFR clearance slot, so I'll just quickly dash off a few words here before I take off for the Big Apple. They are rioting in the streets in Athens, and bankers are being burned … [Read more...]

May 7, 2010 – New York Party

Featured Trades: (NEW YORK PARTY) 2) It's been a great year so far for readers of The Mad Hedge Fund Trader, so to celebrate, I'm throwing a party in New York at 7:00 pm on Monday, May 10. You are all invited to the posh midtown nightclub, the Metropolitan Room, at 34 West 22nd Street, NY, NY 10010, between 5th and 6th Avenue. To learn more about the venue, … [Read more...]

May 6, 2010 – Yesterday, the lemmings discovered the Law of Gravity

  Featured Trades: (SPX), (BP) 1) Yesterday, the lemmings discovered the Law of Gravity,and the plaintive squeals of the dying mammals could be heard throughout the financial markets. European finance ministers must be depressed that their $140 billion bailout of Greece only bought them 24hours of grace in the eyes of investors. The European finance ministers … [Read more...]

May 6, 2010 – Come Join Me For Lunch in Chicago on June 11

2) Come Join Me For Lunch in Chicago on June 11. Due to popular demand, and my urgent need to eat some polish sausage and a decent deep dish pizza, The Mad Hedge Fund Trader has added a third global strategy luncheon to be held in that windiest of cities, Chicago. The event will be held at the Union League of Chicago at 65 West Jackson Boulevard, Chicago, IL 60604. A three … [Read more...]

May 6, 2010 – The Mad Hedge Fund Trader Launches a Free Headline Service on Facebook

3) The Mad Hedge Fund Trader Launches a Free Headline Service on Facebook. To sign up, just go to their website by clicking here at  www.facebook.com/ . Once you have an account open, do a search for 'The Mad Hedge Fund Trader' and click the 'like' button, and that will make you a 'follower.' If you want to learn more about my sordid life, you can also become the 'friend' of … [Read more...]

May 6, 2010 – Time to Play the Minor Asian Currencies

Featured Trades: (CYB), (AYT) 4) Time to Play the Minor Asian Currencies. Long time readers of this letter know too well that I have been yammering on for some time now about the need for China to revalue the Yuan (CYB) (click here for my opus on the 30 year trading history of the Chinese currency). When I look at their trade and current account surpluses and the … [Read more...]

May 5, 2010 – The Leverage Window Just Opened Wider

  Featured Trades: (UBR), (UPV), (UMX), (UXJ), (TMV) 1) The Leverage Window Just Opened Wider. Just as the public debate on risk control gets underway on Capitol Hill, a number of instruments have been launched that will allow unsophisticated retail investors to ramp up their leverage, big time. It's like handing out free fireworks right after your hometown … [Read more...]

May 5, 2010 – Quote of the Day

'Everyone imagined that the passion for tulips would last forever, and that the wealthy from every part of the world would send to Holland and pay whatever prices were asked for them,' said Charles Mackay in his landmark work, Extraordinary Popular Delusions and the Madness of Crowds, published in 1841. … [Read more...]

May 4, 2010 – My Square Root Scenario is Happening

  Featured Trades: (Q1 GDP) 1) My Square Root Scenario is Happening. The 'square root' scenario that I have been forecasting for the US economy is coming to pass. On Friday, the Commerce Department's Bureau of Economic Analysis confirmed that the US grew at a 3.2% annualized rate in Q1, compared to a 2009 Q3 figure of 2.2%,  and 2009 Q4 growth of 5.6%. What's … [Read more...]

May 4, 2010 – A Complete History of Bubbles

Featured Trades: (YOUTUBE) 2) A Complete History of Bubbles. I get sent the most bizarre things by my incredibly diverse band of readers, who now hale from all 50 states and 125 countries. Here is a link to a YouTube video compiled by 'Rogue7135' giving a remarkably compressive history of bubbles, set to rap music. He starts with Dutch tulips in the 17th century. It's … [Read more...]

May 3, 2010 – The Aussie Crosses are On Fire

Featured Trades: (AUSSIE/EURO CROSS), (AUSSIE/YEN CROSS) 1) The Aussie Crosses are On Fire. In the last few days, two of the key foreign exchange cross trades that I have been recommending this year have exploded to new highs. They include the Aussie/yen cross at AUS$0.874 and the Aussie/euro cross at AUS$0.705 (click here for the call). These crosses involve going long … [Read more...]

May 3, 2010 – Baidu Goes Ballistic

Featured Trades: (BIDU), (BYDDF), (GOOG) 2) Baidu Goes Ballistic. Since I am in an 'I told you so' mood, take another look at Baidu (BIDU), which I said last week involved swimming at the deep end of the pool (click here for the call). Well, the pool just got a lot deeper. The Chinese search engine company, the 'Google of China,' announced absolutely blow out earnings, … [Read more...]

May 3, 2010 – Business is Booming at Freeport McMoRan (FCX)

Featured Trades: (COPPER), (FCX) 3) Business is Booming at Freeport McMoRan (FCX). Another company I track religiously for insights on the global economy is Freeport McMoRan (FCX), the world's largest producer of copper, and also a major miner of gold and molybdenum. CEO Richard Adkerson says that revenues are up an amazing 67%; demand for the red metal is 'extremely … [Read more...]