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 Bill Davis, 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
Global Market Comments
August 24, 2015
Fiat Lux
Featured Trade:
(TEN STOCKS TO BUY AT THE BOTTOM),
(SPY), (QQQ), (IWM), (TLT)
(THE MYSTERY OF THE BRASHER DOUBLOON),
(TESTIMONIAL)
SPDR S&P 500 ETF (SPY)
PowerShares QQQ Trust, Series 1 (QQQ)
iShares Russell 2000 (IWM)
iShares 20+ Year Treasury Bond (TLT)
It would be remiss of me not to give thanks to you during this Thanksgiving season for all of your wise and profitable trading advice and wonderfully captivating and intense diaries. You are indeed very generous to your subscribers.
Based on what I have received so far it could not have been more fortuitous for me to have taken up your generous offer to profit from your brain trust.
I have positions in Apple (AAPL) and the Financials (XLF) based on your recommendations. Although I am not fond of Citigroup (C), JP Morgan (JPM), or Wells Fargo (WFC), at least I see (GS) in there!
I really find it somewhat difficult to place trades for the yen (FXY). My parents fled China during the Japanese invasion and settled in Burma where my father's family had a teak lumber business. ?He was cruelly tortured by the Japanese, so I try to avoid anything produced by them.
I drive a SAAB car?(born of jets!!!), own a Bang & Olufsen stereo and a Phillips television set, and rarely eat sushi. ?
I know you have extensive contacts with the Japanese peoples, culture, and economy and it would be foolish of me not to heed your excellent advice on the yen, I just haven't gotten my mind around to it yet.
Do allow me to offer "A Million thank you's" for your excellent trade advice and wonderfully prolific magnum opus diaries!!!!
Shirley
San Francisco, CA
That Was Some Move!
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
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
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
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 Bill Davis, 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
Global Market Comments
August 21, 2015
Fiat Lux
Featured Trade:
(AUGUST 26 GLOBAL STRATEGY WEBINAR),
(FRIDAY, OCTOBER 23 INCLINE VILLAGE, NEVADA STRATEGY LUNCHEON),
(WHAT DID THE FED REALLY SAY?)
(SPY), (EM), (FXE), (EUO),
?(TLT), (TBT), (USO), (GLD), (FCX)
SPDR S&P 500 ETF (SPY)
CurrencyShares Euro ETF (FXE)
ProShares UltraShort Euro (EUO)
iShares 20+ Year Treasury Bond (TLT)
ProShares UltraShort 20+ Year Treasury (TBT)
United States Oil (USO)
SPDR Gold Shares (GLD)
Freeport-McMoRan Inc. (FCX)
What the Federal Reserve gave us on Wednesday with the release of their July minutes was decisive waffle.
On the one hand, steadily rising employment means an interest rate rise is close. On the other, the strong dollar, China, emerging markets, and the oil and commodity collapse is scaring the daylights out of them.
You can bet that every central banker in the world is calling up Janet Yellen begging her not to raise rates this year to save their own skins.
While the US economy is posting great numbers, especially in housing, autos, consumer spending, and anything that consumes energy, the rest of the world is going to hell in a hand basket.
The melt down in emerging markets (EM) is especially egregious, with many currencies hitting all time lows against the greenback.
The markets responded in kind. The probability of a September rate hike has therefore gone from 80/20 to 50/50.
In other words, it?s a coin toss.
I?m not in the coin toss business. I?ll leave that to my competitors. That is, unless the coin is heavily weighted in my favor and has me come up a winner 95% of the time. That has been the recent success rate of my Trade Alert service.
So I am going to cut my long dollar position by half, selling my Currency Shares Euro Trust (FXE) September, 2015 $112-$115 in-the-money vertical bear put spread at $2.68.
Sure, it?s a small profit. But it is better than a poke in the eye with a sharp stick. This gives me the dry powder to resell the beleaguered Europe currency higher up if the current rally continues.
Don?t worry. I have not suddenly fallen in love with the Euro. This is just a tactical move. The long-term bull market for the US dollar is alive and well.
In any case, we amply squeezed the juice from the short Euro trade during the first half when it was in free fall with multiple Trade Alerts. Since then, its volatility has been muted.
As for the Japanese yen (FXY), (YCS), I am going to continue to run my short position there. The fundamentals there are so dire, and the quantitative easing so aggressive, that it pays to keep one finger in the pie.
I?m afraid that the Fed?s indecisiveness is going to pee on the parade for the entire rising interest play for the rest of the year. That includes long positions in financials (GS), (BAC) and shorts in the Treasury bond market (TLT), (TBT). Believers may have to wait until 2016.
The present trading conditions for all markets are among the worst I?ve ever seen. Not taking a quick profit is the same as leaving your wallet in the middle of New York?s Times Square at rush hour and expecting to find it there the next day.
There are a ton of other interesting things to do here. Oil (USO), commodities, and copper (FCX) are reaching multi decade lows.
Gold (GLD) looks like it may be awakening from a long slumber. A friend of mine bought $360 million worth of the barbarous relic just the other day, and he didn?t earn that much money by being a rotten market timer.
As a former student of the US Marine Corps Sniper School at Camp Pendleton, I can assure you that it is far better to lie back and take the careful, measured, precise shot than to engage in hand-to-hand combat with one hand tied behind your back.
I Think I have Spotted a Great Trade