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.
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. Read more
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. Read more
Global Market Comments
November 25, 2013
Fiat Lux
Featured Trade:
(MAD HEDGE FUND TRADER HURTLES TO 58%)
(C), (XLF), (XLI), (FXY), (FXA), (TLT), (TBT),
(TIME TO SOAK UP SOME SOFTBANK),
(SFTBY), (AMZN), (ORCL), (GOOG), (EBAY), (TWTR)
Citigroup, Inc. (C)
Financial Select Sector SPDR (XLF)
Industrial Select Sector SPDR (XLI)
CurrencyShares Japanese Yen Trust (FXY)
CurrencyShares Australian Dollar Trust (FXA)
iShares 20+ Year Treasury Bond (TLT)
ProShares UltraShort 20+ Year Treasury (TBT)
SoftBank Corp. (SFTBY)
Amazon.com Inc. (AMZN)
Oracle Corporation (ORCL)
Google Inc. (GOOG)
eBay Inc. (EBAY)
Twitter, Inc. (TWTR)
The performance of the Mad Hedge Fund Trader?s Trade Alert Service is still going ballistic, falling just short of a 60% gain for the year last week. Every new subscriber since September has seen 100% of their trades turn profitable. This is your classic ?shooting fish in a barrel? market.
I know guys my age aren?t supposed to be packing in 16-hour workdays. But it?s all worth it when I can level the Wall Street playing field for the individual investor.
Including both open and closed trades, the last 21 consecutive Trade Alerts have been profitable. I am rapidly closing in on old record of 25 successful Trade Alerts, made earlier this year.
The Trade Alert service of the Mad Hedge Fund Trader is now up 58.00% in 2013. The November month to date record is now an enviable 13.54%.
The three-year return is an eye popping 113.05%, compared to a far more modest increase for the Dow Average during the same period of only 32%.
That brings my averaged annualized return up to 38.8%.
This has been the best profit since my groundbreaking trade mentoring service was launched three years ago. These numbers place me at the Mount Everest of all hedge fund managers, where the year to date gains have been far more pedestrian. It seems that their shorts are killing them.
I took profits on my long position in Citigroup (C), which just achieved a major upside breakout, and then rolled the capital into the Financials Select Sector SPDR (XLV). I cashed in on a long position in the Australian dollar (FXA). I also took profits on short positions in the Japanese yen as it approached new lows for the year.
My remaining long positions in Apple (AAPL) and the Industrials Sector Select SPDR (XLI) are contributing daily to my P&L, thank you very much. I am also keeping my short in the Treasury bond market, and will double up on the next ten basis point backup in ten-year rates.
This is how the pros do it, and you can too, if you wish.
Carving out the 2013 trades alone, 74 out of 89 have made money, a success rate of 83%. It is a track record that most big hedge funds would kill for.
My esteemed colleague, Mad Day Trader Jim Parker, has also been coining it. Since April, his own performance numbers have just come back from the auditors, revealing that he is up a staggering 279%.
The coming winter promises to deliver a harvest of new trading opportunities. The big driver will be a global synchronized recovery that promises to drive markets into the stratosphere in 2014. The Trade Alerts should be coming hot and heavy. Please join me on the gravy train. You will never get a better chance than this to make money for your personal account.
Global Trading Dispatch, my highly innovative and successful trade-mentoring program, earned a net return for readers of 40.17% in 2011 and 14.87% in 2012. The service includes my Trade Alert Service and my daily newsletter, the Diary of a Mad Hedge Fund Trader. You also get a real-time trading portfolio, an enormous trading idea database, and live biweekly strategy webinars.? Upgrade to?Mad Hedge Fund Trader PRO?and you will also receive Jim Parker?s?Mad Day Trader?service.
To subscribe, please go to my website at www.madhedgefundtrader.com, find the ?Global Trading Dispatch? box on the right, and click on the lime green ?SUBSCRIBE NOW? button.
I have always been a big fan of buying a dollar for 30 cents. That appears to be the opportunity now presented by the Japanese software giant, Softbank (SFTBY).
This gorilla of the Internet space was founded and run by my old friend, Masayoshi Son, who many refer to as a combination of the Jeff Bezos and the Bill Gates of Japan. I have known Mas, as his friends call him, for 30 years, meeting him, of all places, at a University of California Alumni Association meeting. Mas received his BA in economics from Berkeley in 1980.
In three decades, Mas has turned an obscure, hard copy Japanese computer hobbyist magazine into today?s massive online empire. You may know him as the organizer of the huge Comdex conferences in Las Vegas every January, the Woodstock of technology gatherings. Today, Mas has an estimated personal net worth $9 billion, not bad for a kid who wore the same pair of ragged Levis to his economics classes every day.
The really interesting thing about Softbank right now is not what Mas doing, but what he owns. That includes a 37% stake in the Chinese Internet giant, Alibaba, which boasts an overwhelming 80% market share in the Middle Kingdom.
The Hangzhou based Alibaba is actually a group of Internet-based e-commerce businesses including business-to-business online web portals, online retail and payment services, a shopping search engine and data-centric cloud computing services. Think of it as Amazon (AMZN), eBay (EBAY), Google (GOOG), and Oracle (ORCL) all wrapped into one.
In 2012, two of Alibaba?s portals together handled 1.1 trillion Yuan ($170 billion) in sales, more than competitors eBay and Amazon.com combined.
Its sales account for no less than 3% of China?s total GDP. Yikes! To learn more about their website please visit http://news.alibaba.com/specials/aboutalibaba/aligroup/index.html.
Online commerce in China is now growing faster than in any other place on the planet, including the US. Some 5% of retail transactions in the People?s Republic take place on the Internet, and that is expected to grow to 25% over the next three years. By comparison, it took online business in America 15 years to reach that market share.
What is happening in China now is truly fascinating. They are leapfrogging traditional brick and mortar stores, going straight from barter to online purchases, completely skipping the Wal-Mart stage of the retail evolution. I saw the same thing happen during the early nineties, when eastern Europeans jumped straight from having no phones to mobile ones, bypassing decades of unreliable and indifferent landline service.
The value of Alibaba is anyone?s guess as the company is still private. However, my former employers at The Economist magazine estimate that it is worth anywhere from $55-$120 billion. What this means is that you can buy Softbank now purely for the value of its Alibaba ownership, and get everything else the company does in the online universe for free.
But wait! It gets better. Softbank also owns major stakes in Yahoo, whose shares are up a gob smacking 157% since last year (Thank you Marissa Meyer!). It owns a major chunk of Sprint (S), which has gained a mind blowing 325% since 2012. Can Mas pick them, or what? Softbank also owns pieces of Japan Cellular and many other companies.
Add it all up together, and you get a Softbank that is worth at least $250 billion, almost triple its current $97 billion market capitalization. In other words, it?s a steal at this price.
Yes, you may say, this all sounds great. But how do I buy shares in Japan in yen? Easy. Softbank trades on the pink sheets in the US (hence the five letter ticker symbol) and is denominated in US dollars. Normally this means nothing, as liquidity in the pink sheets is notoriously poor.
Not so for (SFTBY), which saw 1.6 million shares worth $67 million trade around $42 a share on a slow Friday with a reasonably narrow spread. You may not be able to margin these, but at least you can get them. You also have some yen exposure here, as these shares are tied to the domestic shares in Japan. As for the big hedge funds, they have to go to Tokyo to get the size they want, and then hedge out their yen risk.
OK, OK, you say. Great story. But the road to perdition is paved with fabulous value plays that were never realized in the marketplace. This thing could stay cheap forever, like Apple (AAPL).
Aha! I got you! Alibaba is about to go public in the US, with Goldman Sachs now polling major institutional investors about potential interest. Given the chance to buy an Amazon clone at ten year ago prices, this IPO will be a blockbuster, making the recent Twitter (TWTR) float pale by comparison.
Did I mention that my buddy, Dan Loeb of hedge fund giant Third Point Partners, totally agrees with me, and has bought $1 billion worth of Softbank shares already?
I?ll wait for a dip before I send out the Trade Alert. If I don?t get one, I may just throw in the towel and buy it at market.
That seems to be the right thing to do this year.
Hitch Your Wagon to Mas
?For the investor who has a strategically allocated portfolio, who are three to five years away from needing their capital, should think of selling the beloved and buying the loathed,? said JJ Burns of JJ Burns and company.
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.