August 16, 2011 – Brace Yourself. The US is Turning into Japan

Featured Trades: (THE US IS TURNING INTO JAPAN)   1) Brace Yourself. The US is Turning into Japan. (SPX) As a silver tsunami of 80 million baby boomers retires, they will be followed by only 65 million from generation 'X'. The intractable problems that unhappy Japan is facing will soon arrive at our shores. Boomers, […]

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August 16, 2011 – A Visit to the Insane Asylum

Featured Trades: (A VISIT TO THE INSANE ASYLUM) 2) A Visit to the Insane Asylum. Watching the ten year Treasury bond tickle a 2.00% yield yesterday, I thought it would be propitious to revisit the insanity that is going on in this market. Historically, ten year bond yields matched the nominal GDP growth rate. So […]

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August 15, 2011 – The Euro is Ready to Turn

Featured Trades: (THE EURO IS READY TO TURN) 1) The Euro is Ready to Turn. I believe that we may be about to witness a sea change in the value of the Euro versus the US dollar. Since January, the Euro has been beating the daylights out of Uncle Buck, as European interest rates have […]

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August 15, 2011 – Use the Melt Down to Load Up on India

Featured Trades: (USE THE MELT DOWN TO LOAD UP ON INDIA), (EEM), (PIN), (INDY), (EPI) 2) Use the Melt Down to Load Up on India. Take a look at the chart for the emerging market ETF (EEM) below and you will be surprised to see how well it has held up in the recent collapse. […]

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August 15, 2011 – Treasury 30 Year Auction Bombs

Featured Trades: (TREASURY 30 YEAR AUCTION BOMBS) 3) Treasury 30 Year Auction Bombs. If you want to see what a failed Treasury bond auction looks like, take a look at the intraday chart for Thursday's sale of 30 year paper, which was a miserable failure. Prices dove and yields soared, from a near 40 low […]

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August 12, 2011 – Jobless Claims Send Bears Fleeing

Featured Trades: (JOBLESS CLAIMS SEND BEARS FLEEING)   1) Jobless Claims Send Bears Fleeing. The single most important coincident indicator you can follow, the weekly jobless claims, showed a modest improvement, sending bears fleeing. The figures released at 8:30 am EST every Thursday had claims fall by 7,000 to 395,000. This is the third consecutive […]

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August 12, 2011 – The True Cost of Oil

Featured Trades: (THE TRUE COST OF OIL) 2) The True Cost of Oil. I received some questions last week on my recent solar pieces as to whether I minded paying more money for ‘green’ power. My answer is ‘hell no,’ and I’ll tell you why. My annual electric bill comes to $1,500 a year. Since […]

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August 12, 2011 – The World’s Largest Solar Plant

Featured Trades: (THE WORLD’S LARGEST SOLAR PLANT)   4) The World’s Largest Solar Plant. Unfortunately, I know Blythe, California too well. This natural blast furnace is in a God forsaken corner of the state where I hunted jack rabbits as a kid, the Indians survived on Gila monsters for protein, and it regularly reaches 130 […]

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August 11, 2011 – Join Me For Lunch in Sydney, Australia on Tuesday, October 11

Featured Trades: (SYDNEY, AUSTRALIA STRATEGY LUNCH) 1) Join Me For Lunch in Sydney, Australia on Tuesday, October 11. Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Sydney, Australia on Tuesday, October 11, 2011. An excellent meal will be followed by a wide ranging […]

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August 11, 2011 – Bernanke Says Buy Stocks, Or Else!

Featured Trades: (BERNANKE SAYS BUY STOCKS, OR ELSE!) 2) Bernanke Says Buy Stocks, Or Else! I believe that the risk markets are discounting a recession that isn't going to happen. Not yet, anyway. So I am going to start adding some small, limited risk call options here. After analyzing the statement from the Federal Reserve […]

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August 11, 2011 – Quote of the Day

If you can get a dividend higher than the yield on ten year debt, it's an opportunity we haven't seen in our lifetime. On a five year horizon, investing in large multinationals with high dividends will have a large payday,' said Lawrence Fink, CEO of BlackRock.

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August 10, 2011 – Is QE3 Back From the Dead?

Featured Trades: (IS QE3 BACK FROM THE DEAD?)   2) Is QE3 Back From the Dead? When I went to bed late last night, the (SPX) was trading down 30 points, and I was thinking 'here we go again'. When I woke up, the market was up 30 points, and I had to blink hard. […]

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August 10, 2011 – The Worst Case Scenario

Featured Trades: (THE WORST CASE SCENARIO)   3) The Worst Case Scenario. 'There is oversold, and there is OVERSOLD'. That was a comment made by my friend, technical analyst Arthur Hill, in the wake of the Dow's breathtaking 634 point crash. Some indicators were showing the most oversold levels in 12 years. I think that […]

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August 9, 2011 – The Second Shoe Falls in the Downgrade Crisis

Featured Trades:  (THE SECOND SHOE FALLS IN THE DOWNGRADE CRISIS) 1) The Second Shoe Falls in the Downgrade Crisis. Today, Standard and Poor’s fired the second barrel of its shotgun at the credit worthiness of the US with its downgrade of Fannie Mae debt from triple ‘A’ to AA+. Other government-backed securities are soon expected […]

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August 9, 2011 – Japan Recovery Starts Early

Featured Trades: (JAPAN’S RECOVERY STARTS EARLY), (EWJ)   2) Japan Recovery Starts Early. It looks like the second half of the ‘V’ shaped recovery of the Japanese economy, the leg up, is starting sooner than expected. Long time readers of this letter already know that in the wake of the March tsunami that hit Japan […]

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