September 8, 2011 – Is the Second Shoe About to Drop on the Euro?

Featured Trades: (IS THE SECOND SHOE ABOUT TO DROP ON THE EURO?), (FXE), (FXF) 1) Is the Second Shoe About to Drop on the Euro? There were two pieces of news today that enabled the Euro (FXE) to benefit from a much needed relief rally. First, the German Supreme Court ruled in favor of the […]

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September 8, 2011 – How US Job Losses Will End

Featured Trades: (HOW US JOB LOSSES WILL END), (FXI), (PIN), (EWY), (VNM) 2) How US Job Losses Will End. I was researching comparative Asian wage data the other day and was astounded with what I found. Textile workers earn $2.99 an hour in India (PIN), $1.84 in China (FXI), and $0.49 in Vietnam (VNM). This […]

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September 8, 2011 – Options for the Beginner

Featured Trades: (OPTIONS FOR THE BEGINNER) 3) Options for the Beginner. I strongly urge readers of this letter to log on to Amazon and by a copy of Options for the Beginner and Beyond by W. Edward Olmstead. Options contracts offer investors a wonderful instrument for minimizing risk, while maximizing the upside, and I am […]

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September 8, 2011 – Quote of the Day

'Go where the growth is, and where the debt isn't, and that is emerging markets,' said David Donabedian, the chief investment officer of Atlantic Trust Co., the private wealth management arm of Invesco.

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September 7, 2011 – Quote of the Day

'The Unites States government is in the business of securities manipulation,' said Jim Grant of the research boutique Interest Rate Observer.

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September 6, 2011 – August Nonfarm Payroll Torpedoes Market Rally

Featured Trades: (AUGUST NONFARM PAYROLL TORPEDOES MARKET RALLY) 2) August Nonfarm Payroll Torpedoes Market Rally. Economist and market strategists alike were stunned by the August nonfarm payroll report showing zero job growth. The headline unemployment rate stayed unchanged at 9.1%. The reports for June and July were revised down a gut punching 58,000. Employers obviously […]

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September 6, 2011 – Quote of the Day

'Patience is not a word that is fixated on two year election cycles. China has a five year plan. We have a five minute plan,' said Steven Roach, former non-executive chairman of Morgan Stanley Asia.

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September 2, 2011 – Come Join Me for Lunch in Hong Kong on Friday, October 21, 2011

Featured Trades: (HONG KONG STRATEGY LUNCHEON) 1) Come Join Me for Lunch in Hong Kong on Friday, October 21, 2011. Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Hong Kong on Friday, October 21, 2011. A three course meal will be followed by […]

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September 2, 2011 – Itching to Get Into Corn

Featured Trades: (ITCHING TO GET INTO CORN), (CORN), (JJG), (DBA), (POT), (MOS), (AGU), (CAT), (DE) 2) Itching to Get Into Corn. Long term readers of this letter know that I have long been banging away on the fact that the world is making people faster than the food to feed them. According to the World […]

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September 1, 2011 – Why I'm Flipping to the Short Side

Featured Trades: (WHY I'M FLIPPING TO THE SHORT SIDE), (BAC) 1) Why I'm Flipping to the Short Side. We have had a nice run here on (BAC), posting a profit of 20% in just one week. The stock market is now at the top end of a one month range, so I am going to […]

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September 1, 2011 – Consumers are Telling Porky Pies

Featured Trades: (CONSUMERS ARE TELLING 'PORKY PIES')   2) Consumers are Telling Porky Pies. When I was working on the trading desk at the London office of Morgan Stanley I became familiar with the particular argot they speak in the East End, otherwise known as 'cockney'. A form a slang originally developed to keep bobbies […]

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August 31, 2011 – The Greek Assist on My Swiss Franc Short

Featured Trades: (THE GREEK ASSIST ON MY SWISS FRANC SHORT), (FXF) 1) The Greek Assist on My Swiss Franc Short. Greece's Eurobank and Alpha Bank have agreed to merge to create the country's largest financial institution. The new entity will have assets of over $217 billion with 2,000 branches. Eurobank had been one of the […]

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August 31, 2011 – Sell Oil for a Stock Hedge

Featured Trades: (SELL OIL FOR A STOCK HEDGE), (USO) 2) Sell Oil for a Stock Hedge. Over the last month, asset classes everywhere have downshifted to new, lower trading ranges, reflecting the very rapid chopping of GDP growth forecasts for 2011 from 4% to 2%. Oil is no exception. I think the new range for […]

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August 31, 2011 – Rare Earths Are Heating Up Again

Featured Trades: (RARE EARTHS ARE HEATING UP AGAIN) 3) Rare Earths Are Heating Up Again. Long time readers remember fondly my 2010 play in the rare earth sector, where stocks like Molycorp (MCP), Avalon (AVARF), and Lynas Corp (LYSCF) clocked gains of over 400%, and the call options went ballistic (click here for ‘Rare Earths […]

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August 29, 2011 – The Great Snore of 2011

Featured Trades: (THE GREAT SNORE OF 2011) 1) The Great Snore of 2011. As I expected, Ben Bernanke’s long awaited Jackson Hole speech turned out to be a huge nonevent. He effectively put off any serious action to repair the sagging economy until the next Federal Open Market Committee (FOMC) meeting on September 20-21. He […]

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