?I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones,? said Nobel Prize winner Albert Einstein.
Come join me for lunch for the Mad Hedge Fund Trader?s Global Strategy luncheon, which I will be conducting in Atlanta, George on Tuesday, April 19, 2016.
A three-course lunch will be followed by an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, foreign currencies, commodities, precious metals, and real estate.
And to keep you in suspense, I?ll be tossing a few surprises out there too. Enough charts, tables, graphs, and statistics will be thrown at you to keep your ears ringing for a week. Tickets are available for $217.
I?ll be arriving at 11:30 AM and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at an exclusive private club in the downtown area of Atlanta details will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research.
To purchase tickets click here.
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
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. 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
March 4, 2016
Fiat Lux
Featured Trade:
(APRIL 20 WASHINGTON DC GLOBAL STRATEGY LUNCHEON),
(SIGN UP NOW FOR TEXT MESSAGING OF TRADE ALERTS),
(GAMING THE MARKET WITH MOMENTUM STOCKS),
(MTUM), (FB), (AMZN), (HD), (SBUX), (V), (SPY)
iShares MSCI USA Momentum Factor (MTUM)
Facebook, Inc. (FB)
Amazon.com, Inc. (AMZN)
The Home Depot, Inc. (HD)
Starbucks Corporation (SBUX)
Visa Inc. (V)
SPDR S&P 500 ETF (SPY)
Hardly a day goes by without a reader asking me which indicators I follow when determining my impeccable market timing.
The short answer is that there are hundreds, and the 50-year accumulation updates real time 24/7 in my head.
However, there is one in particular that is worth mentioning today. That would be the performance of momentum stocks.
Momentum stocks are shares that deliver a larger move in price, or beta, than the market as a whole. They tend to be the shares of high growth companies that deliver a reliable stream of positive earnings surprises.
In fact, they have earned a large following of traders, known as ?momentum investors.?
Call them the canaries in the coal mine.
Look at the list of top ten holding below, and you will find many that you know and love, and are often the subject of Mad Hedge Fund Trader Trade Alerts.
Momentum stocks are attractive because they substantially outperform a more sedentary index, like the S&P 500 (SPY).
Momentum stocks can be a great leading indicator for the stock market as a whole.
When momentum stocks take off like a scalded chimp, it is a good idea to adopt a ?RISK ON? approach towards all of your asset selections.
When momentum stocks fail to reach new highs, it is a warning signal that the party is about to end and ?RISK OFF? assets are about to gain favor.
This is why I always keep a close eye on momentum stocks when assembling my own trading book.
There is one really easy way to follow momentum stocks and that it to watch the iShares MSCI USA Momentum Factor ETF (MTUM) like a hawk.
The (MTUM) seeks to track the performance of an index that measures the performance of 122 U.S. large- and mid-capitalization stocks exhibiting relatively higher momentum characteristics than the main market, before fees and expenses.
This portfolio is then rebalanced every six months to reflect new market trends, and to deep six the losers.
If you want to see how well this works, just take a look at the chart below.
The (MTUM) is particularly attractive because its .15% expense ratio is the lowest among the several offerings in the marketplace.
The fund currently has $1.12 billion in assets, so it is taken seriously by the institutional community.
The trailing 30-day SEC yield is 1.16%, reflecting the fact that many of its holdings are non dividend paying technology and health care stocks.
To learn more about the details of the (MTUM) please click here .
And what are momentum stocks telling us right now?
That they have just had an incredible three-week run and are overdue for a rest.
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. Read more