While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
Global Market Comments
October 18, 2013
Fiat Lux
Featured Trade:
(OCTOBER 23 GLOBAL STRATEGY WEBINAR),
(THE SHUTDOWN IS OVER?FOR NOW), (SPY),
(EUROPEAN STYLE HOMELAND SECURITY),
(TESTIMONIAL)
SPDR S&P 500 (SPY)
After 16 days of high drama, bluster, and handwringing, the Great Washington Shutdown of 2013 is finally over. President Obama held fast and won. The Republicans kept changing their goals by the day and lost.
But what we got was anything but a resolution. The next shutdown is now scheduled for January 15, and the Treasury bond default has been pushed back to March, 2014.
The big winners in all of this have been stock investors. In the wake of the midnight deal, the S&P 500 blasted through to a new all time high. Those who called Republican bluff to crash the economy if Obamacare wasn?t ditched were richly rewarded.
The world was hoping for a Washington induced 10% sell off in shares so they could buy more. In the end, they only got a 4.6% dip, and were forced to chase for the umpteenth time this year. It all has the hallmark of a market that seriously wants to go higher.
So are we going to have to endure all of this again in the New Year?
I doubt it. The Republicans have been severely chastened and are unlikely to push their luck so far next time. Their standing in opinion polls has fallen to all time lows. According to Arizona Senator John McCain, ?we are now down to only paid staff and close family members.? The Democrats have been rewarded for standing fast, and therefore will continue to do so. Missing here is the detonator basis for another freeze in government spending.
The market may be so strong in January that investors may not even notice further antics in our nation?s capitol. Individuals and institutions are still massively underweight equities. The great rotation out of bonds into stocks never really happened this year. Instead, investors sold bonds, but moved the money into cash. Next year, the Great Rotation may really begin in earnest.
This presages a tidal wave of capital flows into stock in the New Year, which could run all the way until March. Expect a strong December, as traders try to front run this move. Extra juice will come from the Federal Reserve, which now has to postpone any taper for another 6-9 months, thanks to the economic slowdown induced by the shutdown. It seems that Ben Bernanke saw it all coming.
Paying readers of this letter are already well aware of my bullish view of stocks (click here for ?Why You Should Buy This Dip?, and ?My 2013 Stock Market Outlook?). If you are still starved for reasons to load the boat with equities, please click here for ?Why US Stocks Are Dirt Cheap?.
All of this makes my yearend target for the S&P 500 of 1,780 a chip shot. It also makes 2014 look pretty good, when I think the index could possibly run up to 2,000.
Until Next TimeThe English are feeling the pinch in relation to recent events in Libya, and have therefore raised their security level from ?Miffed? to ?Peeved.? Soon, though, security levels may be raised yet again to ?Irritated? or even ?A Bit Cross.? The English have not been ?A Bit Cross? since the blitz in 1940, when tea supplies nearly ran out. Terrorists have been re-categorized from ?Tiresome? to ?A Bloody Nuisance.? The last time the British issued a ?Bloody Nuisance? warning level was in 1588, when threatened by the Spanish Armada.
The Scots have raised their threat level from ?Pissed Off? to ?Let?s get the Bastards.? They don?t have any other levels. This is the reason they have been used on the front line of the British army for the last 300 years.
The French government announced yesterday that it has raised its terror alert level from ?Run? to ?Hide.? The only two higher levels in France are ?Collaborate? and ?Surrender.? The rise was precipitated by a recent fire that destroyed France?s white flag factory, effectively paralyzing the country?s military capability.
Italy has increased the alert level from ?Shout Loudly and Excitedly? to ?Elaborate Military Posturing.? Two more levels remain: ?Ineffective Combat Operations? and ?Change Sides.?
The Germans have increased their alert state from ?Disdainful Arrogance? to ?Dress in Uniform and Sing Marching Songs.? They also have two higher levels: ?Invade a Neighbor? and ?Lose.?
Belgians, on the other hand, are all on holiday as usual; the only threat they are worried about is NATO pulling out of Brussels.
The Spanish are all excited to see their new submarines ready to deploy. These beautifully designed subs have glass bottoms so the new Spanish navy can get a really good look at the old Spanish navy.
Australia, meanwhile, has raised its security level from ?No worries? to ?She?ll be alright, Mate.? Two more escalation levels remain: ?Crikey! I think we?ll need to cancel the barbie this weekend!? and ?The barbie is canceled.? So far no situation has ever warranted use of the final escalation level.
? John Cleese ? British writer, actor and tall person.
?The process for the investor to move out the risk curve is not complete,? said Leon Cooperman, the legendary hedge fund manager at Omega Advisors, who is projecting modestly positive returns for stocks in 2014.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.
While the Diary of a Mad Hedge Fund Trader focuses on investment over a one week to six-month time frame, Mad Day Trader, provided by Jim Parker, will exploit money-making opportunities over a brief ten minute to three day window. It is ideally suited for day traders, but can also be used by long-term investors to improve market timing for entry and exit points.