?We?ve seen the S&P 500 drop 50% twice in the last 17 years. That is the new normal?, said Richard Kang of Emerging Global Advisors.
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
April 5, 2016
Fiat Lux
Featured Trade:
(APRIL 18 MIAMI GLOBAL STRATEGY LUNCHEON),
(GUESS WHO?S BEEN BUYING GOLD?),
(GLD), (GDX), ($SSEC),
(MY BRIEFING FROM THE JOINT CHIEFS OF STAFF),
(PANW), (PHO), (HACK), (FXI), (RSX),
(TESTIMONIAL)
SPDR Gold Shares (GLD)
Market Vectors Gold Miners ETF (GDX)
Palo Alto Networks, Inc. (PANW)
PowerShares Water Resources ETF (PHO)
PureFunds ISE Cyber Security ETF (HACK)
iShares China Large-Cap (FXI)
Market Vectors Russia ETF (RSX)
Gold bugs, conspiracy theorists, and perma bears had some unfamiliar company last year.
While traders, individuals, and ETF?s have been unloading gold for the past five years, central banks have been steady buyers.
Who had the biggest appetite for the barbarous relic? Russia, which has been accumulating the yellow metal to avoid economic sanctions imposed by the United States in the wake of their invasion of the Ukraine.
Hot on their heals was China, which has flipped to a large net importer of gold to meet insatiable demand from domestic investors.
It seems the Chinese stocks markets ($SSEC) were not the great trading opportunity they were hyped to be, which plunged 30% during the first two months of 2016, and is now 60% off its all time high. That?s a big deal in a country that has no social safety net.
Many Chinese now prefer to buy gold instead of stocks, which are now considered too risky for a personal nest egg. They are facilitated by the ubiquitous precious metal coin stores, which have recently sprung up like mushrooms in every city.
Only a few years ago, private ownership of gold resulted in China having your organs harvested by the government.
Central bank sellers have been few and far between. Venezuela has dumped about half its reserve to head off a recurring liquidity crisis. Middle Eastern sovereign wealth funds cashed in some chips to deal with the oil price crash.
Canada has also been selling for reasons unknown to us south of the border.
All of this poses a really interesting question. Gold fell for the four consecutive years that central banks were buying, and the rest of the world was selling.
What happens when the rest of the world flips to the buy side?
My guess is that it goes up, which is why I have issued long side trade Alerts on gold every month this year.
Depending on who you talk to, the magical support level were you get back in for another visit to the trough is $1,199 or, $1,200.
In the meantime, I think I?ll run my (GLD) April 15 $$109-$112 vertical bull call spread into expiration in eight trading days.
I retired eight years ago, and my broker told me to hang in there with my stocks before the recession, so I saved myself a lot of money and closed the account.? In 2009 I started paying for advice and investing on line.?
A blind chicken could have made a fortune in 2009, and I did well.?But it got harder, so I added advisers.? John Thomas was one I added in 2010.?
Since then, my TAX FREE profits have been greatly improved.? Last year I made more than 80% on the information that I received from the Mad Hedge Fund Trader.?
I am not a day trader (I belong to a country club and play golf daily) but I also subscribe to Mad Day Trader service.? Now I have John's in-depth experience combined with Jim's analytical timing.?
I spend about ten to fifteen hours a week on my investments, and played 120 rounds of golf last year.? Year-to-date, my investments are up 50% with Mad Hedge Fund Trader advice, I just completed my 40th round of golf, and my wife thinks she is the sole sustainer of our local plant nursery.?
Thanks John and Jim.? I could not live like this without your VALUABLE effort.
Gratefully,
Kurt
Sacramento, CA
?We are now at the sunny side of central bank influence,? said my friend, Mohamed El-Erian.
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
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
April 4, 2016
Fiat Lux
Featured Trade:
(COME JOIN ME FOR A MARKET PANEL DISCUSSION),
(APRIL 15 HOUSTON STRATEGY LUNCHEON INVITATION),
(REVISITING THE BIG PICTURE ON THE ECONOMY),
(TSLA)
Tesla Motors, Inc. (TSLA)
Come join me, John Thomas, the Mad Hedge Fund Trader, for a wide ranging discussion of the near term direction of the stock market with a group of top market professionals on Monday, April 4th at 1 PM (ET).
The meeting is being organized by the boutique research firm Timing Research. It will be hosted by my friend, Matt "Whiz" Buckley of TopGunOptions.com, another former combat pilot who actively trades the market.
We will be joined by
- Lance Ippolito of AlphaShark.com
- Sam Bourgi of TradingGods.net
- Sang Lucci of SangLucci.com
Together we will attempt to discern the most important drivers of stock prices in the coming weeks and the overall net direction.
I always have a lot of fun with these things since it is interesting to learn new approaches to trading the market. I am also usually the one who turns out to be right.
In order to participate for free please click here.
See you there!
