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
March 18, 2014
Fiat Lux
Featured Trade:
(FRIDAY APRIL 25 SAN FRANCISCO STRATEGY LUNCHEON
(ITS TIME FOR A STRATEGY CHANGE),
(SPY), (DAL), (GE), (GS), (BAC), (TLT), ($DAX),
(HOW TO TRADE CALL SPREADS IN AUSTRALIA),
(MY FAVORITE SECRET ECONOMIC INDICATOR)
SPDR S&P 500 (SPY)
Delta Air Lines Inc. (DAL)
General Electric Company (GE)
The Goldman Sachs Group, Inc. (GS)
Bank of America Corporation (BAC)
iShares 20+ Year Treasury Bond (TLT)
German DAX Composite (EOD) Deut ($DAX)
There is absolutely no doubt that both risk and volatility are rising in the financial markets. The higher the indexes rise, the sharper the intraday breaks. That is never a healthy sign for a bull market that has thrived for more than two years without a 10% correction.
The Crimean referendum should have been a yawn, not worthy of the 400 point swan dive that the Dow Average delivered last week. When the markets over react to the downside, and then rally back only on small volume, that is another excuse to pare back risk.
Some 45 years in the markets have taught me that whenever I have a great run, they will then suddenly reverse and bite me back. And let?s face it, the last two years have been spectacular, the Trade Alert Service nearly doubling the assets of loyal followers. It?s time to learn some humility, before the markets impose it upon you.
All of the recent US economic data has been good. But this isn?t about the data. It is all about market sentiment. And the current rumblings in Crimea are definitely not market friendly, pro global growth, pro risk ones.
If serious economic sanctions are imposed on Russia by Europe and the US, the impact on global growth will be negative, even if it is small. Traders are all about the next incremental change, not necessarily the magnitude.
So I am inclined to take small profits when they arise. No more hanging on for the last dollar. That was a 2013 play. Look for a market that grinds for days, and then concentrates all of the volatility for the week in a single day, like today.
Take the money and run, while it?s there.
For the many Australians who recently subscribed to Mad Hedge Fund Trader PRO, a temporary regulatory obstacle has emerged.
There are two types of trading accounts permitted by Australian financial regulators:
Cash Accounts ? opened by individuals
Regulation ?T? accounts -? opened by corporations and trusts
Reg ?T? accounts have no problems executing any of my Trade Alerts, including those for stocks, bonds, exchange trade funds, options, call spreads, and put spreads. However, regulators have recently barred Cash Accounts from trading in call spreads and put spreads.
Their logic is that individuals lack the financial sophistication to engage in these types of trades. The reality is the opposite, that they are limiting individuals to engaging in higher risk positions while banning them from the lower risk ones. Welcome to the world of financial regulation!
The easy way around this is for individuals to set up a paper corporation for the purpose of handling their trading activities. This is far easier than it first appears. My friends at Halifax Investment Services will do this for you for as little at AUS$575. One swipe of your credit card and you are in business.
The benefits of doing this are huge. You can then execute every type of trade under the sun, including all of the Mad Hedge Fund Trader?s Trade Alerts. You can also reduce your tax rate from as high as 47% that hits profits in Cash Accounts to only a mere 30%. I don?t know how people in the Land Down Under view taxation, but here in the US it is absolutely despised.
Every professional trader in Australia operates through a corporate entity, and you would be mad not to do so. If the past is any guide, long-term followers of my service all have one problem in common: they make too much money, creating unforeseen tax headaches.
There is one other way to deal with the Australian regulator?s discrimination against individual investors: wait a couple months. They have been sued by a number of individuals and organizations seeking to block this double standard. My in country tax attorneys tell me that a resolution is expected soon. Once the issue is settled, the only difference between Reg T and Cash Accounts will be the tax rate.
To learn more about the special services that Halifax Investment Services Ltd. is providing readers of the Mad Hedge Fund Trader for no extra cost, please click here at http://madhedgefundradio.com/a-special-offer-for-australian-subscribers/?
To avail yourselves of these services, please open an account with Halifax Investment Services Ltd. by clicking here at??http://madhedgefundradio.com/hisl-australia/ . There, you will be asked to complete a form with your basic information. Within a few days, you should receive a phone call from a Halifax financial advisor who has been assigned to provide you assistance.
Good Luck and good trading!
Did You Say Only a 30% Tax Rate?
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.
Further Update to: Trade Alert -(DAL)
Sell the Delta Airlines April, 2014 $30-$32 bull call spread at $1.72 or best
Closing Trade
3-17-2014
expiration date: April 18, 2014
Portfolio weighting: 10%
Number of Contracts = 63 contracts
There is absolutely no doubt that both risk and volatility are rising in the financial markets. The higher the indexes rise, the sharper the intraday breaks. That is never a healthy sign for a bull market that has thrived for more than two years without a 10% correction.
The Crimean referendum should have been a yawn, not worthy of the 400 point swan dive that the Dow Average delivered last week. When the markets over react to the downside, and then rally back only on small volume, that is another excuse to pare back risk.
Some 45 years in the markets have taught me that whenever I have a great run, they will then suddenly reverse and bite me back. And let?s face it, the last two years have been spectacular, the Trade Alert Service nearly doubling the assets of loyal followers. It?s time to learn some humility, before the markets impose it upon you.
So I am inclined to take small profits when they arise. No more hanging on for the last dollar. That was a 2013 play. Look for a market that grinds for days, and then concentrates all of the volatility for the week in a single day, like today.
Take the money and run, while it?s there.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the trade to come to you. The middle market is the halfway point between the bid and the offered prices that you see on your screen with your online broker.
The difference between the bid and the offer on these deep in-the-money spread trades can be enormous. Don?t execute the legs individually or you will end up losing much of your profit. Keep in mind that these are ballpark prices only. Spread pricing can be very volatile especially on expiration months farther out.
Here are the specific trades you need to execute this position:
Sell 63 April, 2014 (DAL) $30 calls at??.????$4.50
Buy to cover short 63 April, 2014 (DAL) $32 calls at..$2.78
Net Proceeds:??????.???????..??....$1.72
Profit at expiration: $1.72 - $1.60 = $0.12
(63 X 100 X $0.12) = $756 or 0.76% profit for the notional $100,000 portfolio.
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
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
March 17, 2014
Fiat Lux
Featured Trade:
(FRIDAY APRIL 4 INCLINE VILLAGE, NEVADA STRATEGY LUNCHEON),
(CHARTS TO WATCH FOR AN END TO THE CRISIS),
(SPY), (TLT),(FXY), (RSX),
(GLD), (CU), (CYB), (VIX), (VXX),
(RUNNING THE SAN FRANCISCO BAY TO BREAKERS)
SPDR S&P 500 (SPY)
iShares 20+ Year Treasury Bond (TLT)
CurrencyShares Japanese Yen Trust (FXY)
Market Vectors Russia ETF (RSX)
SPDR Gold Shares (GLD)
First Trust ISE Global Copper Index (CU)
WisdomTree Chinese Yuan Strategy (CYB)
VOLATILITY S&P 500 (^VIX)
iPath S&P 500 VIX ST Futures ETN (VXX)