April 1, 2015

Global Market CommentsApril 1, 2015Fiat Lux Featured Trade:(LAS VEGAS WEDNESDAY MAY 8 GLOBAL STRAGEGY LUNCHEON)(GET READY TO LOAD THE BOAT WITH HOMEBUILDERS),(LEN), (KBH), (PHM), (DHI), (IYR) Lennar Corp. (LEN)KB Home (KBH)PulteGroup, Inc. (PHM)DR Horton Inc. (DHI)iShares US Real Estate (IYR) … [Read more...]

Las Vegas Friday, May 8 Global Strategy Luncheon

Las Vegas

Come join me for lunch for the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Las Vegas, Nevada on Friday, May 8. A three-course lunch will be followed by a PowerPoint presentation and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, foreign currencies, commodities, precious metals, and real estate. … [Read more...]

Get Ready to Load the Boat with Homebuilders

Home with Chart

I am writing this to you from Terminal 3 at San Francisco airport, awaiting my flight to Honolulu, Hawaii. The pilot strides by quickly and purposefully, and I’m wondering if I should stop him for a brief pilot to pilot chat. How are you feeling? Are you satisfied with your life? Are you feeling depressed at all? Hey, did you hear the one about the chicken that crossed the … [Read more...]

April 1, 2015 – Quote of the Day

Woman-Anxiety

“There’s a lot of performance anxiety out there right now. There’s nothing worse than sitting on cash watching a market go up double digits,” said Tom Lee, chief US equity strategist of JP Morgan. … [Read more...]

March 31, 2015

Global Market CommentsMarch 31, 2015Fiat Lux Featured Trade:(WEDNESDAY APRIL 1 GLOBAL STRATEGY WEBINAR),(ENTERING THE QUIET TIME),(SPY), (IWM), (QQQ), (IJR), (GS), (FXE),(CHINA’S COMING DEMOGRAPHIC NIGHTMARE) SPDR S&P 500 ETF (SPY)iShares Russell 2000 (IWM)PowerShares QQQ Trust, Ser 1 (QQQ)iShares Core S&P Small-Cap (IJR)The Goldman Sachs Group, Inc. … [Read more...]

Don’t Miss the April 1 Global Strategy Webinar

John Thomas - Breakfast

My next global strategy webinar will be held on Wednesday, April 1 at 12:00 PM EDT, which I will be broadcasting live from the island of Maui in Hawaii. The Mad Day Trader will be my willing co-conspirator. I’ll be giving you my updated outlook on stocks, bonds, commodities, currencies, precious metal, and real estate. The goal is to find the cheapest assets in the world to … [Read more...]

Entering the Quiet Time

Shhhh

I’ll let you in on my top secret investment strategy that has brought me blockbuster results over the past six years. Listen to the Wharton Business School’s professor, Jeremy Siegel. The good doctor has been unremittingly bullish year in and year out, nearly pegging the stock index performance annually. So, when he says that the Dow Average is going to rise to 20,000 by the … [Read more...]

China’s Coming Demographic Nightmare

emperor

Thanks to China's “one child only” policy adopted 30 years ago, and a cultural preference for children who grow up to become family safety nets, there are now 32 million more boys under the age of 20 than girls. Large scale interference with the natural male:female ratio has been tracked with some fascination by demographers for years, and is constantly generating unintended … [Read more...]

March 31, 2015 – Quote of the Day

Girl Tight Jeans

“The time to worry about the Fed is not when they go from accommodative to neutral, it is when they go from neutral to tight,” said Bill Miller the legendary former chairman and CIO of Legg Mason Capital Management. … [Read more...]

March 30, 2015

Global Market Comments March 30, 2015 Fiat Lux Featured Trade: (LAST CHANCE TO ATTEND THE FRIDAY, APRIL 3 HONOLULU, HAWAII STRATEGY LUNCHEON) (TAKE PROFITS ON CYTRX CORP. (CYTR) CytRx Corporation (CYTR) … [Read more...]

Last Chance to Attend Friday April 3 Honolulu, Hawaii Global Strategy Luncheon

Hula Dancer

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Honolulu, Hawaii on Friday, April 3, 2015. An excellent meal will be followed by a wide-ranging discussion and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals and real estate. And to … [Read more...]

Take Profits on CytRx Corp. (CYTR)

JT with Tesla

It’s time to take profits on CytRx Corp., but only if you are a trader. The shares that I first recommended in June, 2014 have just tacked on a healthy 40% over the last three weeks. However, if you are an investor, hang on. I believe that the biotech boom in the US is only just getting started. The sector should grow from 1% to 20% of US stock market capitalization over the … [Read more...]

March 30, 2015 – Quote of the Day

Animial Trap

“We’re in a secular bull market for the dollar. …A strong dollar is a natural consequence of America emerging from a liquidity trap, while Europe and Japan are still stuck in one. The dollar is a growth stock, and growth stocks over time outperform utilities,” said Paul McCulley, formerly the chief economist at bond giant PIMCO. … [Read more...]

March 27, 2015

Global Market Comments March 27, 2015 Fiat Lux Featured Trade: (WEDNESDAY APRIL 1 GLOBAL STRATEGY WEBINAR), (FRIDAY, MAY 15 SAN FRANCISCO STRATEGY LUNCHEON) (TEN TIPS FOR SURVIVING A DAY OFF WITH ME)   … [Read more...]

Friday, May 15 San Francisco Strategy Luncheon

San Francisco

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in San Francisco on Friday, May 15, 2015. An excellent meal will be followed by a wide ranging discussion and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And to … [Read more...]

Ten Tips for Surviving a Day Off With Me

Sierra Mtn - Sign

I have snowshoed some 350 miles so far this winter, most of it over 9,000 feet with a 60 pound pack. I’ll probably put in over 600 before the spring snowmelt, since my February Australian lecture tour is going to take a bite out of my training schedule. So I think I’m finally getting the hang of it. It is definitely a sport of mixed pleasures. The blisters and calluses that … [Read more...]

March 27, 2015 – Quote of the Day

Sale

“If the dollar stays up here, a lot of companies are going to have to re price their products. Very few firms have the pricing power of Apple,” said my friend, Dan Niles, of Alpha One Partners. … [Read more...]

March 26, 2015

Global Market Comments March 26, 2015 Fiat Lux Featured Trade: (FRIDAY, APRIL 17 INCLINE VILLAGE, NEVADA STRATEGY LUNCHEON), (FRIENDS WHO WILL EXECUTE MY TRADER ALERTS FOR YOU), (HOW TO EXECUTE A VERTICAL BULL CALL SPREAD) (AAPL) Apple Inc. (AAPL) … [Read more...]

Friday, April 17 Incline Village, Nevada Global Strategy Luncheon

John Thomas-Backpacking

Come join me for lunch at the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Incline Village, Nevada on Friday, April 17, 2015. An excellent meal will be followed by a wide-ranging discussion and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real … [Read more...]

Friends Who Will Execute My Trade Alerts for You

John Thomas

Practically every day, I get emails from readers asking me to take over management of their money so I can execute my Trade Alerts for them. With an 80% success rate an average annualized return, why wouldn’t they? Unfortunately, I have to turn these invitations down. Watching the market, doing the research for new Trade Alerts, keeping up with a global speaking schedule and … [Read more...]

How to Execute a Vertical Bull Call Spread

Bull

For those readers looking to improve their trading results and create the unfair advantage they deserve, I have posted a new training video on How to Execute a Vertical Bull Call Spread. This is a matched pair of positions in the options market that will be profitable when the underlying security goes up, sideways, or down small in price over a defined limited period of time. … [Read more...]

March 26, 2015 – Quote of the Day

Theodore Roosevelt

“In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing,” said President Theodore Roosevelt, whose oldest daughter, Alice Roosevelt Longworth I once met. … [Read more...]

March 25, 2015

Global Market Comments March 25, 2015 Fiat Lux Featured Trade: (THE BLOCKBUSTER READ IN THE HEDGE FUND COMMUNITY), (AMERICA’S NATIVE INDIAN ECONOMY) … [Read more...]

The Blockbuster Read in the Hedge Fund Community

MONEY Master the Game

About a year ago, I received a call from a friend of Tony Robbins, the renown, six foot seven inch motivational speaker. He said he was looking for billionaires to participate in a future project. I answered that I wasn’t a billionaire yet, but that he should call me in a couple of years when I might be there. Last week, the end result of that project landed on my desk, the … [Read more...]

America’s Native Indian Economy

indian

When I was remodeling my 160-year-old London house, the chimney was in desperate need of attention. After the bricklayer crawled up the fireplace, he found a yellowed and somewhat singed envelope addressed to Santa Claus. Thinking it was placed there by my kids, he handed it over to me. In it was a letter penned in a childlike scrawl, written with a quill and ink, dated … [Read more...]

March 25, 2015 – Quote of the Day

Peter Lynch

“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost by corrections themselves,” said the legendary Fidelity money manager, Peter Lynch, who once told me I was the dumbest broker he had ever met. … [Read more...]

March 24, 2015

Global Market CommentsMarch 24, 2015Fiat Lux Featured Trade:(FRIDAY, APRIL 3 HONOLULU, HAWAII STRATEGY LUNCHEON)(TEN REASONS WHY STOCKS ARE STILL GOING UP),(AAPL), (IBM), (XOM), (WFC), (INTC), (DXJ), (COP) Apple Inc. (AAPL)International Business Machines Corporation (IBM)Exxon Mobil Corporation (XOM)Wells Fargo & Company (WFC)Intel Corporation (INTC)WisdomTree Japan … [Read more...]

Ten Reasons Why Stocks Are Still Going Up

Shelby

While driving back from Lake Tahoe last weekend, I received a call from a dear friend who was in a very foul mood. He had bailed on all his equity holdings at the end of last year, fully expecting a market crash in the New Year. Despite market volatility doubling, multinationals getting crushed by the weak euro and the Federal Reserve now signaling its first interest rate rise … [Read more...]

March 23, 2015

Global Market CommentsMarch 23, 2015Fiat Lux Featured Trade:(MAD HEDGE FUND TRADER HITS 10% PROFIT IN 2015),(FXE), (EUO), (SPY), (GILD), (AA), (QCOM), (T), (LINE), (TBT), (ZIOP), (THRX), (ZTS), (USO),(THE GREAT SOCIAL SECURITY MARRIAGE BENEFIT YOU’VE NEVER HEARD OF) CurrencyShares Euro ETF (FXE)ProShares UltraShort Euro (EUO)SPDR S&P 500 ETF (SPY)Gilead Sciences Inc. … [Read more...]

Mad Hedge Fund Trader Hits 10% Profit in 2015

John Thomas

I am sitting here at the Lone Eagle Grill in Incline Village, Nevada, enjoying a rare solo lunch. No one is asking me about the future of interest rates, if there is any gold inside Fort Knox or if the aliens really landed at Roswell, New Mexico. My table overlooks majestic Lake Tahoe, and a brace of mallard ducks has just skidded across the smooth surface for a landing. My … [Read more...]

The Great Social Security Marriage Benefit You’ve Never Heard Of

John Thomas-Vintage Car

The telltale signs were suddenly everywhere. The AARP membership cards appeared, unsolicited, in the mail (American Association of Retired Persons). People have started giving up their seat to me whenever I ride the BART, especially when I need a haircut. And recently, I have found those never ending TV ads about drugs dealing with arthritis, Alzheimer’s disease and erectile … [Read more...]

March 20, 2015

Global Market CommentsMarch 20, 2015Fiat Lux SPECIAL JAPAN ISSUE Featured Trade:(FRIDAY, MAY 15 SAN FRANCISCO STRATEGY LUNCHEON)(THE BULL CASE FOR JAPANESE STOCKS),(DXJ), (SNE), (CAJ),(IT’S ALL OVER FOR THE JAPANESE YEN),(FXY), (YCS) WisdomTree Japan Hedged Equity ETF (DXJ)Sony Corporation (SNE)Canon Inc. (CAJ)CurrencyShares Japanese Yen ETF (FXY)ProShares UltraShort Yen … [Read more...]

The Bull Case for Japanese Stocks

Karate

If you live long enough, you see everything. After a 25-year hiatus, here I am finally back making money in the Japanese stock market once again. Any sentient being couldn’t help but notice the specular results the Japanese stock market has produced so far in 2015. The Nikkei Average is up a robust 11.7%, while the Wisdom Tree Japan Hedged Equity Fund (DXJ), which eliminates … [Read more...]

It’s All Over for the Japanese Yen

Japanese Girl

The only reservation I have about doing this trade right now is that the Japanese fiscal year ends on March 31. As we all know, book closings can generate some pretty weird gyrations in the market place as both companies and government window dress in the extreme. However, once we are in the new fiscal year, I expect the yen to resume its downtrend, and the Nikkei its … [Read more...]

March 19, 2015

Global Market CommentsMarch 19, 2015Fiat Lux Featured Trade:(FRIDAY, APRIL 3 HONOLULU, HAWAII STRATEGY LUNCHEON)(FED NOT TO RAISE INTEREST RATES IN 2015)(IWM), (DXJ), (GLD), (FXE), (FXY), (USO), (TLT),(TESTIMONIAL) iShares Russell 2000 (IWM)WisdomTree Japan Hedged Equity ETF (DXJ)SPDR Gold Shares (GLD)CurrencyShares Euro ETF (FXE)CurrencyShares Japanese Yen ETF (FXY)United … [Read more...]

Fed Not to Raise Interest Rates in 2015

Janet Yellen

Yes, that is the shocking truth that Fed chairman Janet Yellen told us today with the release of the central bank’s minutes. Of course, she didn’t exactly say that she would raise interest rates for the first time in a decade in so many words. To discern that, you had to be fluent in Janetspeak. Very few people have the slightest idea what comprises Janetspeak. It just so … [Read more...]

Testimonial

Jim Parker

Dear Jim, Good for You!!!!!!! Thanks for the Microsoft trade in your Late Show email yesterday! Bought the Microsoft (MSFT) March 20 $42 Calls for 21 cents yesterday. It just closed out at 64 cents after the jump today. Overnight, I made a 200% profit, so I took the money! Regards, Daniel Los Angeles … [Read more...]

March 19, 2015 – Quote of the Day

Janet Yellen.

“Just because we removed the word “patient” doesn’t mean that we are going to be impatient,” said my friend, Federal Reserve Chairman Janet Yellen. That is pure Janet. I feel like I’m back at Berkeley. … [Read more...]

March 18, 2015

Global Market Comments March 18, 2015 Fiat Lux Featured Trade: (FRIDAY, APRIL 17 INCLINE VILLAGE, NEVADA STRATEGY LUNCHEON) (THE BUY AND FORGET PORTFOLIO), (SPY), (IXUS), (EEM), (VNQ), (TLT), (TIP) SPDR S&P 500 ETF (SPY) iShares Core MSCI Total Intl Stk (IXUS) iShares MSCI Emerging Markets (EEM) Vanguard REIT ETF (VNQ) iShares 20+ Year Treasury Bond (TLT) iShares TIPS … [Read more...]

The Buy and Forget Portfolio

Daenerys Targaryen

All traders and portfolio managers with experience approaching a half century, like myself and a handful of close friends, all agree on one thing. Someday, you will be wrong. I don’t mean just a little bit wrong, I mean disastrously wrong. A real humdinger, even a life threatening experience. Even wrong up the wazoo. In fact, most old salts, even the best performing ones, … [Read more...]

March 17, 2015

Global Market CommentsMarch 17, 2015Fiat Lux SPECIAL OIL ISSUE Featured Trade:(LAS VEGAS FRIDAY MAY 8 GLOBAL STRAGEGY LUNCHEON)(MAD DAY TRADER JIM PARKER KILLS IT WITH AN OIL SHORT), (USO),(HERE COMES THE NEXT PEACE DIVIDEND), (AAPL), (USO), (UUP), (TLT), (GLD), (SLV), (CU), (CORN), (SOYB)(MORE PAIN TO COME IN OIL)(USO), (XOM), (OXY), (COP), (AAL) United States Oil ETF … [Read more...]

Mad Day Trader Jim Parker Kills it With an Oil Short

John Thomas

Mad Day Trader Jim Parker is a modest guy. He has never been one to boast of his many achievements. If he does a great trade, he simply marks it in the “WIN” column and moves on to the next trade. I, however, am not Jim Parker. As you may have noticed over the years, I have no hesitation whatsoever about singing my own praises, as well as those of others. So, I will bang his … [Read more...]

Here Comes the Next Peace Dividend

syria1

When communications between intelligence agencies suddenly spike, as has recently been the case, I sit up and take note. Hey, do you think I talk to all of those generals because I like their snappy uniforms, do you? The word is that the despotic, authoritarian regime in Syria is on the verge of collapse. The body count is mounting, and the only question now is whether Bashar … [Read more...]

More Pain to Come in Oil

The Prize

There are very few people I will drop everything to listen to. One of the handful is Daniel Yergin, the bookish founder and CEO of Cambridge Energy Research Associates, the must-go-to source for all things energy. Daniel received a Pulitzer Prize for The Prize: The Epic Quest for Oil, Money, and Power, a rare feat for a non-fiction book (I’ve never been able to get … [Read more...]

March 16, 2015

Global Market CommentsMarch 16, 2015Fiat Lux Featured Trade:(FRIDAY, APRIL 3 HONOLULU, HAWAII STRATEGY LUNCHEON)(THE CRASH COMING TO A MARKET NEAR YOU), (TLT), (TBT),(A TOUCHDOWN FOR USC), (INTC) iShares 20+ Year Treasury Bond (TLT)ProShares UltraShort 20+ Year Treasury (TBT)Intel Corporation (INTC) … [Read more...]

The Crash Coming to a Market Near You

Bank for Int'l Settlements

I’m sure that most of you are spending your free time devouring the utterly fascinating pages of Fifty Shades of Gray these days. I, however, am reading slightly different subject matter. As obscure, academic and abstruse the “Global Dollar Credit: Links to US Monetary Policy and Leverage” may sound, published by the Bank for International Settlements, it has been an absolute … [Read more...]

A Touchdown for USC

David and Dana Dornsife

One of my many alma maters, the University of Southern California, announced that they had received their largest private donation ever. As a third generation alumni of this fanatical football factory (I went to school with Mark Harmon, Lynn Swan, and oops, OJ Simpson), I still receive their alumni newsletter, where I learned the good news. David and Dana Dornsife gave $200 … [Read more...]

March 16, 2015 – Quote of the day

Woman in glasses

“The stock market is one of those things that looks better the more expensive it gets,” said Barbara Marcin, portfolio manager of the Gabelli Dividend Growth Fund. … [Read more...]

March 13, 2015

Global Market CommentsMarch 13, 2015Fiat Lux Featured Trade:(MARCH 18 GLOBAL STRATEGY WEBINAR),(TAKING PROFITS ON MY EURO SHORTS),(FXE), (EUO), (DXGE), (HEDGE)(ARE JUNK BONDS PEAKING?), (JNK), (HYG) CurrencyShares Euro ETF (FXE)ProShares UltraShort Euro (EUO)WisdomTree Germany Hedged Equity ETF (DXGE)Hedge Inversiones SICAV (HEDGE)SPDR Barclays High Yield Bond ETF … [Read more...]

Taking Profits on the Euro

John Thomas - beer

Occasionally the consensus is right. Since the start of the year, it seems that everyone and his brother, sister and cleaning lady has been selling short the euro. As a result, the beleaguered continental currency has suffered one of the sharpest falls in the history of the foreign exchange markets. I have to think back three decades to recall something similar, when the … [Read more...]

Are Junk Bonds Peaking?

Childrens Game

There is no happier corner of the fixed income universe than junk bonds (JNK), (HYG), which have been soaring like a bat out of hell for the past four years. Average yields for the bond class most sensitive to the economy have collapsed from 18% to near an all-time low of 5%, a scant 300 basis points over ten year Treasury bonds (TLT). The ETF (JNK), which I have been … [Read more...]

March 13, 2015 – Quote of the Day

gravity

“We are still in the gravitational pull of the Great Recession. I would have to put the likelihood of a double dip recession now up to 50%,” said my old UC Berkeley economics professor, Robert Reich. … [Read more...]

March 12, 2015

Global Market CommentsMarch 12, 2015Fiat Lux Featured Trade:(MAD DAY TRADER JIM PARKER IS UP 39% IN 2015),(ZIOP), (THRX), (ZTS), (DXJ), (USO), (SPY), (IWM),(FRIDAY, MAY 15 SAN FRANCISCO STRATEGY LUNCHEON)(DIAMONDS ARE STILL AN INVESTOR’S BEST FRIEND) ZIOPHARM Oncology, Inc. (ZIOP)Theravance Inc. (THRX)Zoetis Inc. (ZTS)WisdomTree Japan Hedged Equity ETF (DXJ)United States Oil … [Read more...]

Mad Day Trader Jim Parker is up 39% in 2015

Jim Parker

Mad Day Trader Jim Parker has been absolutely knocking the cover off the ball this year, delivering a blistering 39% profit so far for followers. He was in and out of the Apple (AAPL) melt up twice. He was early and big in the biotechnology sector, trading around ZIOPHARM Oncology (ZIOP), Therevance (THRX), and Zoetis (ZTS). He played the Japanese economic recovery through … [Read more...]

Diamonds Are Still an Investor’s Best Friend

ring

If you forgot to buy your loved one a birthday present and spent a week sleeping on the sofa, eating canned food, and cleaning out the cat box, you now have a chance to redeem yourself. A revolutionary new website exists called Mazal Diamond, which promises to turn the online jewelry business upside down. I went to the privately held company’s website at … [Read more...]

March 11, 2015

Global Market Comments March 11, 2015 Fiat Lux Featured Trade: (WHAT ALMONDS SAY ABOUT THE GLOBAL ECONOMY), (BE CAREFUL WHO YOU SNITCH ON), (COULD YOU QUALIFY TO BECOME A US CITIZEN?) … [Read more...]

What Almonds Say About the Global Economy

Almond Trees

Yes, that’s right, you read it correctly, almonds. By now, many of you have figured out that I like calling my paid subscribers to find out how they find the service. I always ask for suggestion for improvements. Then I ask what they do besides trade the markets. I get an amazing array of answers. One reader flew helicopters in Alaska to inspect oil pipelines, executing … [Read more...]

Be Careful Who You Snitch On

Sherron Watkins

Buried in the recently passed Dodd-Frank financial reform bill are massive financial rewards for turning in your boss. The SEC is hoping that multimillion dollar rewards amounting to 10%-30% of sanction amounts will drive a stampede of whistleblowers to their doors with evidence of malfeasance and fraud by their employers. These rewards can be worth hundreds of millions of … [Read more...]

Could You Qualify to Become a US Citizen?

Fireworks

The coming Fourth of July celebration brings back memories of my late wife’s campaign to become an American citizen, who originally came from Japan. Part of the process required a verbal quiz about US history and government. Our family spent a year energetically prepping her, with nightly grilling’s over dinner about the most obscure details of our independent form of … [Read more...]

March 11, 2015 – Quote of the Day

Chinese Military

“If you can’t beat your Chinese competitor in China and win there, you will lose all the markets your like,” said David Cote, CEO of Honeywell.   … [Read more...]

March 10, 2015

Global Market CommentsMarch 10, 2015Fiat Lux Featured Trade:(WHY I WENT TO 100% CASH),(HEDJ), (SPY), (FXE), (GLD), (TLT)(THE SOLAR ROAD REVISTED),(AAPL), (GOOG), (TESLA), (FB), (TWTR) WisdomTree Europe Hedged Equity ETF (HEDJ)SPDR S&P 500 ETF (SPY)CurrencyShares Euro ETF (FXE)SPDR Gold Shares (GLD)iShares 20+ Year Treasury Bond (TLT)Apple Inc. (AAPL)Google Inc. … [Read more...]

Why I Went to 100% Cash

John Thomas

I am sitting here in the balcony seats at the Napa City Winery. Somehow, my peripatetic social life has dragged me down here to listen to a Hispanic rap group. That’s right, you heard it correctly. A Hispanic rap group. It is midnight. The sound is so loud that it is vibrating through my chest. So I have withdrawn into my own inner silence to contemplate what the hell … [Read more...]

March 9, 2015

Global Market CommentsMarch 9, 2015Fiat Lux Featured Trade:(WATCH OUT FOR APPLE IN THE DOW),(AAPL), (T), (MSFT), (CSCO), (INTC),(A COW BASED ECONOMICS LESSON) Apple Inc. (AAPL)AT&T, Inc. (T)Microsoft Corporation (MSFT)Cisco Systems, Inc. (CSCO)Intel Corporation (INTC) … [Read more...]

Watch Out for Apple in the Dow

Apple Watch

Apple holders (AAPL) were ecstatic and even apoplectic when they heard that their beloved company would be joining the Dow Average of 30 stocks on March 18. The move requires thousands of portfolio managers to add Apple to their portfolios, like the $32 billion worth of Dow index managers, whether they want to or not. From now on it will be illegal for them not to own Apple. … [Read more...]

A Cow Based Economics Lesson

HappyCow

SOCIALISM -You have 2 cows. You give one to your neighbor. COMMUNISM -You have 2 cows. The State takes both and gives you some milk. FASCISM -You have 2 cows. The State takes both and sells you some milk. NAZISM -You have 2 cows. The State takes both and shoots you. BUREAUCRATISM -You have 2 cows. The State takes both, shoots one, milks the other, and then throws the milk … [Read more...]

March 9, 2015 – Quote of the Day

Line Dancers

“No one is line dancing over the fact that the market is at 1,940. No one feels good about it. The market likes to climb a wall of worry, and the stonemason has been hard at work. So I think we continue to grind higher,” said Jason Trennert, chief investment strategist at Strategas Research Partners. … [Read more...]

March 6, 2015

Global Market Comments March 6, 2015 Fiat Lux Featured Trade: (THE MAD HEDGE FUND TRADER’S SEVENTH ANNIVERSARY ISSUE) (FRIDAY, APRIL 17 INCLINE VILLAGE, NEVADA STRATEGY LUNCHEON) … [Read more...]

The Mad Hedge Fund Trader’s 7th Anniversary Issue

John Thomas

Yes, it seems like it was only yesterday. But as of February 1 the Diary of a Mad Hedge Fund Trader has been going out to idea hungry investors now for seven long years. And what a seven years it has been! So I will take the opportunity to explain the murky history of this august publication, which is now visited by thousands of readers every day from 135 countries around the … [Read more...]

March 6, 2015 – Quote of the Day

Vladimir Putin

“I think this is about Russia reasserting itself on the international stage, basically saying that Russia is back and is a force to be reckoned with. I think we underestimated for a long time the extent of the humiliation that Russians felt after the collapse of the Soviet Union,” said former Secretary of Defense and CIA head Robert M. Gates. … [Read more...]

March 5, 2015

Global Market Comments March 5, 2015 Fiat Lux Featured Trade: (GET READY FOR THE COMING GOLDEN AGE), (SPY), (INDU), (FXE), (FXY), (UNG), (EEM), (USO), (TLT), (NSANY), (TSLA) SPDR S&P 500 (SPY) Dow Jones Industrial Average (^DJI) CurrencyShares Euro Trust (FXE) CurrencyShares Japanese Yen Trust (FXY) United States Natural Gas (UNG) iShares MSCI Emerging Markets (EEM) … [Read more...]

Get Ready for the Coming Golden Age

thunderbird_1

I believe that the global economy is setting up for a new golden age reminiscent of the one the United States enjoyed during the 1950’s, and which I still remember fondly. This is not some pie in the sky prediction. It simply assumes a continuation of existing trends in demographics, technology, politics, and economics. The implications for your investment portfolio will be … [Read more...]

March 5, 2015 – Quote of the Day

Stanley Druckenmiller

By historic, fundamental measures, stocks are extremely high. PE multiples are at 100 years highs. But if you look at stock prices relative to interest rates, they are exactly where they should be,” said hedge fund legend, Stanley Druckenmiller. … [Read more...]

March 4, 2015

Global Market CommentsMarch 4, 2015Fiat Lux Featured Trade:(CHICAGO FRIDAY, APRIL 30 GLOBAL STRAGEGY LUNCHEON),(WHY THERE IS NO BUBBLE IN STOCKS),(AAPL), (EBAY), (CSCO), (BRCM), (AMZN),(AN EVENING WITH “GOVERNMENT MOTORS”), (GM) Apple Inc. (AAPL)eBay Inc. (EBAY)Cisco Systems, Inc. (CSCO)Broadcom Corp. (BRCM)Amazon.com Inc. (AMZN)General Motors Company (GM) … [Read more...]

Chicago Friday, April 30 Global Strategy Luncheon

Chicago

Come join me for lunch for the Mad Hedge Fund Trader’s Global Strategy Update, which I will be conducting in Chicago on Thursday, April 30. A three course lunch will be followed by a PowerPoint presentation and an extended question and answer period. I’ll be giving you my up to date view on stocks, bonds, foreign currencies, commodities, precious metals, and real estate. And … [Read more...]

Why There is No Bubble in Stocks

Money Bubble

One couldn’t help but notice the outbreak of recollection, reminiscing and schadenfreude that took place yesterday when the NASDAQ briefly tipped over 5,000. I remember it like it was yesterday. I am still amazed by the frenzy that took place, witnessing the kind of bubble one only sees twice a century. And I was right in the thick of it, living in nearby Silicon Valley. … [Read more...]

An Evening with “Government Motors”

GM-CEO-Dan-Akerson-1

Yesterday, the auto industry announced blowout sales figures for February which came in at an eye popping SAAR of 17 million units. We are now within a hairs breadth of the peak last during the salad days of 2001-2002. It all provides more evidence the ultra bull scenario for the rest of 2015, which has the economy growing a 3% annualized rate during the final three quarters … [Read more...]

March 4, 2015 – Quote of the Day

War for Independence

“Our economic machine really works. It’s worked since 1776...Look at any milestone you want to pick, and over time it’s gotten so much better,” said Oracle of Omaha, Warren Buffett. … [Read more...]

March 3, 2015

Global Market CommentsMarch 3, 2015Fiat Lux Featured Trade:(MARCH 4 GLOBAL STRATEGY WEBINAR),(THERE ARE NO GURUS),(THE COST OF CLEAN COAL),(KOL), (UNG), (PCG), (BTU), (JOY) Market Vectors Coal ETF (KOL)United States Natural Gas (UNG)PG&E Corporation (PCG)Peabody Energy Corp. (BTU)Joy Global, Inc. (JOY) … [Read more...]

There Are No Gurus

Love Guru

If there was ever an argument that you should rely on independent newsletters for guidance about financial markets, such as The Diary of a Mad Hedge Fund Trader and not traditional brokerage houses, take a look at the chart below from JP Morgan. It shows that despite all of the reforms passed after the dotcom crash, less than 3% of broker reports come with “sell” or … [Read more...]

The Price Tag for Clean Coal

Smoke Stacks

I wanted to get the low down on clean coal (KOL) to see how clean it really is, so I visited some friends at Lawrence Livermore National Laboratory in California. The modern day descendent of the Atomic Energy Commission, where I had a student job in the early seventies, the leading researcher on laser induced nuclear fission, and the administrator of our atomic weapons … [Read more...]

March 3, 2015 – Quote of the Day

Warren Buffett

“It’s a terrible mistake to own something, just because somebody else owns it, even if that other person is Benjamin Graham, the dean of investing,” said Oracle of Omaha, Warren Buffett. … [Read more...]

March 2, 2015

Global Market Comments March 2, 2015 Fiat Lux Featured Trade: (FRIDAY, APRIL 3 HONOLULU, HAWAII STRATEGY LUNCHEON) (THE FED GIVES THE GREEN LIGHT TO STOCKS), (AND MY PREDICTION IS...), (TESTIMONIAL) … [Read more...]

Fed Gives Green Light to Stocks

Women Flapper Dresses

The best is yet to come with regards to the US economy, says the Federal Reserve. The oncoming onslaught of positive economic data means that the bull market in stocks will have years to run. The full impact of the Fed’s aggressive five year, $4.5 trillion program of monetary easing will only start to be felt in 2015. Everything up until now has just been a warm up. … [Read more...]

And My Prediction Is…

The Beatles

Take those predictions, forecasts, and prognostications with so many grains of salt. They have a notorious track record for being completely wrong, even when made by the leading experts in their fields. In preparing for my autumn lecture series, I came across the following nuggets and thought I’d share them with you. There are some real howlers. 1876  "This 'telephone' has too … [Read more...]

Testimonial

BusinessJohnThomasProfileMap2-1

I don’t know what I would do without John Thomas’s information. It is informative and entertaining. In the past 2 years I have almost doubled my portfolio, something I couldn't have done on my own. As a military member, he has enabled me to ensure that I will not only be able to retire on time, but also help my children through college. If things keep going this well, I will … [Read more...]

March 2, 2015 – Quote of the Day

Otto von Bismarck

“A fool learns from experience. A wise man learns from the experience of others,” said Otto Von Bismarck, the first Chancellor of Modern Germany.   … [Read more...]

February 27, 2015

Global Market Comments February 27, 2015 Fiat Lux Featured Trade: (MARCH 4 GLOBAL STRATEGY WEBINAR), (RIGHT SIZING YOUR TRADING), (“THE OPENING BELL WITH JIM PARKER”) … [Read more...]

Right Sizing Your Trading

John Thoms - Black Swans

I can’t tell you how many times I have been woken up in the middle of the night by an investor who was sleepless over a position that was going the wrong way. Gold was down $50, the Euro was spiking two cents, or the stock market was enduring one of its periodic heart attacks. Of course, my answer is always the same. Cut your position in half. If your position is so large … [Read more...]

The Opening Bell with Jim Parker

Jim Parker

The Opening Bell with Jim Parker Well, you asked for it, and now it is here. You were looking for that extra edge in reading and trading the markets? Well, now it is here, The Opening Bell with Jim Parker. With The Opening Bell, Jim Parker will give an early read on where each day’s market action will take place. He will focus on a dozen or so names where traders are most … [Read more...]

February 27, 2015 – Quote of the Day

Rockettes

“The next leg of the bull market is going to have to be a fundamental leg, not a liquidity leg, and investors are in a little bit of a malaise trying to figure that out,” said Anthony Scaramucci of Skybridge Capital. … [Read more...]

February 26, 2015

Global Market CommentsFebruary 26, 2015Fiat Lux Featured Trade:(HOW HIGH IS HIGH?),(SPY), (QQQ), (IWM), (USO), (TLT), (VIX),(ORDER EXECUTION 101) SPDR S&P 500 ETF (SPY)PowerShares QQQ Trust, Series 1 (QQQ)iShares Russell 2000 (IWM)United States Oil ETF (USO)iShares 20+ Year Treasury Bond (TLT)VOLATILITY S&P 500 (^VIX) … [Read more...]

How High is High?

Boulevard

Those who read my New Year predictions already know that my target for the S&P 500 at the end of 2015 is a range of 2,288-2,392, or up 10%-15%. When I made that forecast, I was heaped with abuse, derision and scorn, as usual. Perma bears and market haters never miss an opportunity to loose their slings and arrows against those who have been bullish (read accurate), … [Read more...]

Order Execution 101

Diver

Given the recent difficulty in placing orders in this tedious, illiquid market, I have been inundated with requests for how to execute orders. So I thought I’d take some time today to expound on the basics of order execution 101. There are three basic ways to intelligently get an order into the market: 1) The No Brainer Average In. Buy half at the receipt of the Trade Alert … [Read more...]