Featured Trades: (SHRINKING LIQUIDITY) 2) Why Real Market Liquidity has Been Shrinking for Decades. The ‘flash crash’ is in effect the little boy who shouted out that the emperor has no clothes. It was a day that has been long in coming. The screaming great weakness in the global capital markets has long been that [...]

Featured Trades:  (PALL), (PPLT), (LUMBER), (NATURAL GAS), (EURO), (SUGAR) 3) Palladium is the Top Performing Asset of the Year. Here’s an update of YTD asset class performance. Palladium (PALL), one of my favorites (click here) is now on top with a 33.3% return, followed by my lumber call at number three (+24.8%), and my platinum [...]

'Don't forget folks, market internals here are very strong,' said a TV reporter who shall remain nameless, on March 7, 2000.

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 [...]

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, [...]

Featured Trades: (BP), (RIG) 3) Is a Nuclear Winter Coming for the Offshore Oil Industry? Besides developing some great gas wells costing $1/MCF when it was selling for $2, the fruit of my four years of wildcatting in the Barnet shale was many great relationships in the energy industry. Over the years, I have not [...]

Featured Trades: (DBA), (MOO), (PHO), (FIW) 4) An Environmental Activist’s Take on the Markets. I spent an evening with Lester Brown, president of the Earth Policy Institute and a winner of the coveted MacArthur Prize, for some long term thinking about the environment and its investment implications. Global warming is causing the melting of ice [...]

'Home bias is the big risk to your portfolio,' said Richard Kang, head of research at Emerging Global Advisors, about American's preference for buying their own stocks.

  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 [...]

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 [...]

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 [...]

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 [...]

'We ran into a crazy bull market when stocks didn't react enough to wipe out even the one point margins, and,of course, all the customers were bulls and pyramiding,' said Jesse Livermore, legendary stock speculator in the 1920's.

  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 [...]

Featured Trades: (TBF), (TBT), (TMV) 2) Shrinking Federal Deficits Bode Ill for Bond Shorts. I have written at length about the rapid repair in California's finances that sparked a bull market in its municipal bonds. Brace yourself; the same thing is happening at the federal level. Tax receipts from the healthy sectors of the economy [...]