Time to Short the Garlic Eaters

The garlic eaters don’t want to repay their debts, and the beer drinkers don’t want to lend them any more money. That pretty much sums up the financial tensions that exist within Europe right now. The PIIGS countries of Portugal, Ireland, Italy, Greece’s, and Spain are lurching from one emergency financing to the next. European […]

Read full story Comments are closed

My Personal Leading Economic Indicator

I just flew over one of my favorite leading economic indicators yesterday. Honda (HMC) and Nissan (NSANY) import millions of cars each year through their Benicia, California facilities, where they are loaded on to hundreds of rail cars for shipment to points inland as far as Chicago. Three years ago, when the US car market […]

Read full story Comments are closed

Will Gold Coins Suffer the Fate of the $10,000 Bill?

The conspiracy theorists will love this one. Buried deep in the bowels of the 2,000 page health care bill was a new requirement for gold dealers to file Form 1099′s for all retail sales by individuals over $600. Specifically, the measure can be found in section 9006 of the Patient Protection and Affordability Act of […]

Read full story Comments are closed

The 12 Day Year

I have reported in the past on the value of the Friday-Monday effect, whereby the bulk of the year’s performance can be had through buying the Friday close in the stock market and then selling the Monday close. Well, I have discovered a further distillation of this phenomenon. During 2010, the S&P 500 rose by […]

Read full story Comments are closed

November 25, 2011 – Quote of the Day

“Everybody is a day trader now, and a long term hold is three hours,” said noted bank analyst, Dick Bove, of Rochdale Securities.

Read full story Comments are closed

Surviving Thanksgiving

The Mad Hedge Fund Trader is taking a break for the next few days to take Turkey with the expanded family. A 28 pound bird made the ultimate sacrifice, and will be accompanied with mashed potatoes, gravy, stuffing, potato salad, mince pie, and a fine Yamhill Chardonnay. I ate an entire pumpkin pie last night […]

Read full story Comments are closed

IMF Euro Bail Out Attempt Flops

The International Monetary Fund announced a new facility for members to address a short term liquidity crisis. The measure is aimed at beleaguered Europeans girding themselves for a steady worsening of their sovereign debt crisis in the hope of “breaking the chain of contagion.”  But the measure is more of a squirt gun than a […]

Read full story Comments are closed

Film Review of “Margin Call”

Now it’s time for some cultural edification. I first became aware of “Margin Call” as a pre-production project two years ago when news leaked out that the principal actors, Kevin Stacey, Demi Moore, Stanley Tucci, and Jeremy Irons, were reading the Diary of a Mad Hedge Fund Trader to learn about the industry and get […]

Read full story Comments are closed

November 23, 2011 – Quote of the Day

“Washington got the wrong message from the debt ceiling debate. They got the message that the downgrade didn’t matter very much when it came to the US Treasury’s ability to float debt. It’s the wrong message. We are watching a major economy like Italy having trouble getting financing from international capital markets. One day it […]

Read full story Comments are closed

Sold Out! Last Chance to Sign Up for the November 25 Portland Strategy Luncheon

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Lunch, which I will be conducting in Portland, Oregon at 12:00 noon on Friday, November 25, 2011, the day after Thanksgiving. A three course lunch will be followed by a PowerPoint presentation and an extended question-and-answer period. I’ll be giving you my […]

Read full story Comments are closed

Watch Out for the Bear Trap

The volatility index (VIX) is just not buying this sell off. Even with the Dow down over 300 today, the (VIX) has only managed a meager 3% gain on the day. With a move in equities of this magnitude, you would expect volatility to rise by 15% or more. If traders and investors really believed […]

Read full story Comments are closed

Two Cheers for Paris Hilton

How unpopular is Congress? Freshman senator Michael Bennet of Colorado, who recently compiled the results of a popularity public opinion poll showing how far in the dumps the Congressional reputation has fallen. Only Fidel Castro is more despised than our august representatives on capital hill. 40% IRS 16% BP during the Gulf oil spill 15% […]

Read full story Comments are closed

Testimonial

I love it John. The analysis is great – and the trades are limited to a dozen or so vehicles I can follow. You make it so easy for us. The service continues to improve – alerts are more timely, text alerts are working nicely. My only wish is the webcasts were regularly posted same […]

Read full story Comments are closed

November 22, 2011 – Quote of the Day

“Europe is really too far away to get the American family to cancel that trip to Disney World. That is the guts of it,” said Federal Reserve Governor James Bullard.

Read full story Comments are closed

SPECIAL CHINA ISSUE

  I am writing this from the back of a taxi in Hong Kong’s Central district. My meetings with assorted bankers, hedge fund managers, Taipans, and the press stretched on longer than expected, with the result that I am now stuck in rush hour traffic on the way to the airport. So I might as […]

Read full story Comments are closed