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Mad Hedge Fund Trader

October 28, 2014 - MDT - Corn Futures Alert

MDT Alert

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. Read more

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-28 10:08:542014-10-28 10:08:54October 28, 2014 - MDT - Corn Futures Alert
Mad Hedge Fund Trader

October 28, 2014 - MDT Pro Tips A.M.

MDT Alert

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. Read more

0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-28 10:06:472014-10-28 10:06:47October 28, 2014 - MDT Pro Tips A.M.
Mad Hedge Fund Trader

October 28, 2014

Diary, Newsletter, Summary

Global Market Comments
October 28, 2014
Fiat Lux

Featured Trade:
(GOLDILOCKS IS BACK!), (SPY), ($INDU),
(CHINA?S VIEW OF CHINA),
(FXI), (EEM)

SPDR S&P 500 ETF (SPY)
Dow Jones Industrial Average ($INDU)
iShares China Large-Cap (FXI)
iShares MSCI Emerging Markets (EEM)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-28 09:14:092014-10-28 09:14:09October 28, 2014
Mad Hedge Fund Trader

Goldilocks is Back!

Diary, Newsletter, Research

Her red Tesla is parked in the driveway, her potted plants are back on the balcony, and the closet is once again filled with designer shoes.

Goldilocks is back!

It?s not like she was ever going to be gone for long. Once a woman of a certain maturity gets accustomed to the lifestyle of the rich and famous, it?s hard to give up the better things in life.

However, there were some doubts.

When the Dow Average opened down 400 points on October 15, a gigantic capitulation move saw $70 billion worth of stock sold at market at the absolute low of 15,850, and a spectacular 315 million shares of the S&P 500 ETF (SPY) were unloaded.

One might have thought that Goldilocks had changed her name and moved into a nunnery for good.

It was not to be.

The rally that ensued off of that print was one of the most ferocious in history. After having cleaned out hedge fund trader longs on the downside, the market then ripped their faces off on the upside.

It has not been a good year for hedge funds. It has been a fantastic year for high frequency traders, with September the most profitable month in the history of this arcane, computer trading strategy.

As for me, I never had any doubt that Goldilocks was coming back. As I miraculously pound into my followers on a daily basis, it?s all about the numbers. It?s always about the numbers.

The strength of the economy is such that the sudden 10% swoon we witnessed was in no way justified. All that was really required was that an extreme overbought condition in stocks we say six weeks ago be remedied. Now that is done, it is up, up, and away.

Corporate earnings obliged, with an eye-popping 80% delivering upside surprises. Corporate earnings are now growing at a robust year on year 11% annual rate.

Instead of focusing in on Ebola, Russia and ISIS, traders are now looking at improving Purchasing Managers Indexes in both Europe and China. The Middle East has gone quiet. There were even rumors, later quashed, of an extended quantitative easing for the US.

The European Central Bank announced the results of its bank stress test, and guess what? Almost everyone passed! Only 12 banks need to raise $12 billion in new capital.

Of course, this was never more than a window dressing exercise designed to make us all feel warm and fuzzy about the beleaguered continent.

It worked!

Capital spending also remains robust for the first time in eight years. But I think most analysts are missing the reason why this is happening. It is too late for companies to add capacity for this economic cycle.

They are instead building factories now to accommodate demand for the next economic and financial boom in the early 2020?s, when the stiff demographic headwind created by the baby boomers flips to a brisk tailwind provided by the Gen Xer?s.

The true 800-pound gorilla on the trading landscape these days is the price of oil, which broke the $80 handle yesterday morning. As with every move by every financial instrument everywhere, the more it goes down, the more dire the forecasts become. The savings in energy costs at this level amount to $12,000 per family per year. Do the math.

$10 a barrel? Really?

I think it is safe to say, like interest rates, energy prices will stay lower for longer than anyone imagines possible. So add another 1% to US GDP growth this year, next year and the one after that.

When the stock market figures this out, new highs will follow, probably before year end.

 

SPY 10-27-14

INDU 10-27-14

GoldilocksHas Goldilocks Moved Back in For Good?

https://www.madhedgefundtrader.com/wp-content/uploads/2014/10/Goldilocks.jpg 337 131 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-28 09:12:302014-10-28 09:12:30Goldilocks is Back!
Mad Hedge Fund Trader

Trade Alert - (SPY) October 27, 2014

Trade Alert

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

0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-27 13:32:012014-10-27 13:32:01Trade Alert - (SPY) October 27, 2014
DougD

October 27, 2014 - MDT Pro Tips A.M.

MDT Alert

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. Read more

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 DougD https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png DougD2014-10-27 10:36:212014-10-27 10:36:21October 27, 2014 - MDT Pro Tips A.M.
Mad Hedge Fund Trader

October 27, 2014

Diary, Newsletter, Summary

Global Market Comments
October 27, 2014
Fiat Lux

Featured Trade:
(THE TRUTH ABOUT EBOLA), (SPY),
(AMERICA?S DEMOGRAPHIC TIME BOMB),
(TESTIMONIAL)

SPDR S&P 500 ETF (SPY)

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-27 01:06:142014-10-27 01:06:14October 27, 2014
Mad Hedge Fund Trader

The Truth about Ebola

Diary, Free Research, Newsletter

Now we learn that the Ebola virus has been riding New York?s ?A? train subway line since October 21!

That is what we have learned from the physician from Doctors Without Borders, now locked up in the Ebola Ward at Manhattan?s Bellevue Hospital, just returned from treating victims in the West African country of Guinea. His girlfriend and some close friends have been rounded up and are now undergoing 21 day isolation treatment.

As for the 100,000 people who have ridden the ?A? train since, we?ll just have to wait and see. And the Uber drive involved, who knows?

The doctor also went bowling in Brooklyn before he checked himself into the hospital. That will almost certainly signal the death of this much-loved recreation. Who knows where those fingers have been that used that 16 pound ball last?

Looks like I?ll never top my lifetime best of a 200 score.

As a long in the tooth trader of most of the world?s major markets, I can tell you to use every Ebola induced market swoon as a buying opportunity. To explain why, I have to delve into my dark and murky past.

Back in the early 1970?s, the well-connected head of the Biology Department at the University of Southern California got me a summer job at the Nuclear Test Site in Nevada.

Some 60 miles north of Las Vegas on lonely US Highway 95, I found four recreational vehicles parked on the right side of the road in the middle of nowhere, the place of business, one of the world?s oldest profession.

But where were the customers? From there, a dirt road headed east and disappeared over a distant mountain range. The road was not on the map.

An hour latter I found myself in Mercury, Nevada, then inside Nellis Air Force base, the mythical ?Area 51.? Baking in 120-degree heat and filled with hundreds of WWII era Quonset huts, Mercury Nevada was one of the most forlorn parts of the world. The sole recreational facility was the swimming pool, which was particularly popular with the coed graduate students after midnight.

My heavy math background got me a job to work on the ultra top secret Neutron Bomb project, although I didn?t find out that?s what is was for another decade. This is where ?yield? didn?t mean interest paid, but ?millions killed.?

Because I came from a biology department I was particularly popular with the biowarfare guys, who were also there in force. My area of expertise was tropical diseases.

I was often invited to lunch at the commissary so they could pick my brain for potential new vectors. Yes, the subject of Ebola came up, as the kill rate was an attractively high 50%. But it was dismissed because the transmissibility is so poor. You can?t rely on a bioweapon that requires you to hug your enemy.

In the end, the flu virus was settled on as the most effective agent. It is airborne, and the virus reproduces every hour. It has also been field-tested. During the great 1918-1919 Spanish Flu pandemic, 100 million died around the world, mostly those in their teens and twenties, including a couple of great aunts of mine.

Best of all, it naturally originates in China, where contact between humans and pigs is the greatest on the planet. That?s where our viruses combine to form new organisms. You?d never be able to tell the difference between a bioattack and the real thing.

Since then, the US has created hundreds of synthetic viruses and stockpiled their vaccines. The Chinese have created thousands. For more depth on this, click here for ?Will SynBio Save or Destroy the World?.

Which brings us all to where we are today. Why do we have a fixation, not only with Ebola, but ISIL, Russia, China, and the Ukraine as well?

I blame it all on the 24 hour news cycle, a monster with a voracious appetite that has to be constantly fed. Never mind that much of what they pump out is speculation, or is just plain untrue.

The financial media are the worst of all. On market down days they parade out their collection of perma bears. On the up days the perma pulls get the spotlight. Listen to all the advice and you end up buying the up days and selling the down days.

It is a perfect money destruction machine. Too many individual investors run through entire 401k?s and IRA?s before they figure this out, if ever.

I know when many readers see a news flash, they wonder ?Gee, should I sell?? I know people in New York who have become so nervous about Ebola, they have quit shaking hands with people.

I?m a little different.

One moron actually predicted that there would be 300,000 Ebola cases in Liberia by the end of the year. One of the purposes of this newsletter is to separate out fact from fiction, the wheat from the chaff. I take great pleasure in using an Ebola induced market dump to get you to load up on S&P 500 (SPY) calls spreads, as I have done.

I?ll tell you what the stock market thinks about Ebola. The two who caught the disease after the initial fatality are cured. The 48 who came into contact with him are also out of their 21 days quarantine period. So far the US has suffered one fatality from the dread virus, but boasts 330 million survivors.

There was a time in our history when we were flooded with thousands of disease carrying immigrants. They carried everything from black plague to smallpox, cholera, dengue fever, malaria, and tuberculosis.

What the government did then was quarantine all suspected carriers to Angle Island in San Francisco Bay and Ellis Island in New York harbor, until the doctors gave them the all clear. The new quarantine procedures hark back to that day.

You are not going to get the Ebola Virus. Earnings are the primary market focus here, not an African virus. Keep your eye on the ball, and don?t get distracted.

 

TRAN 10-23-14

SPX 10-23-14

RUT 10-23-14

VIX 10-23-14No Ebola Here

 

Ebola VirusIs This A ?BUY? Signal?

https://www.madhedgefundtrader.com/wp-content/uploads/2014/10/Ebola-Virus-e1414246615403.jpg 266 400 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-27 01:05:582014-10-27 01:05:58The Truth about Ebola
Mad Hedge Fund Trader

October 24, 2014 - MDT - Yen Order Update

MDT Alert

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. Read more

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-24 10:24:172014-10-24 10:24:17October 24, 2014 - MDT - Yen Order Update
Mad Hedge Fund Trader

October 24, 2014 - MDT - Aussie Position Update

MDT Alert

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. Read more

https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2014-10-24 10:22:462014-10-24 10:22:46October 24, 2014 - MDT - Aussie Position Update
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Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

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