The Five Most Important Things That Happened Today
(and what to do about them)
1) General Electric Cuts its Dividend, from 12 cents a share to one cent after reporting a breathtaking $22.8 billion loss. The Feds have opened a criminal investigation into accounting practices. This may define the final bottom in the stock. Take another look at those long-term LEAPS. Click here.
2) UK to Implement Digital Tax, which will raise $500 million in revenues, which is sofa change. It's big tech’s worst fears realized. It’s why Amazon lost $100 billion in market capitalization yesterday. Click here.
3) Oil Hits a Three-Month Low, slaughtering hedge funds everywhere. This makes no sense against a 3.5% GDP growth rate and looming Iran crisis. Is Texas tea now predicting a recession in 2019? Click here.
4) Who Was That Idiot Who Told You to Sell Volatility Too Soon? Oops, it’s me. But now may be another time to take a bite of the apple. Click here.
5) Personal Consumption Expenditures Up Only 0.1% in September. Inflation is nowhere to be seen, meaning the December Fed rate hike is a sure thing. Just what you wanted to hear. Click here.
Published today in the Mad HedgeGlobal Trading Dispatch and Mad Hedge Technology Letter:
(HERE IS YOU BEST PERFORMING ASSET OVER THE NEXT 30 YEARS)
(HOW ARTIFICIAL INTELLIGENCE WILL ENHANCE OR DESTROY YOUR PORTFOLIO)
(TSLA), (AMZN), (FB)
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-30 09:58:142018-10-30 09:58:14Mad Hedge Hot Tips for October 30, 2018
“Stocks are like people. They never look so good as they do at their peak,” said Donald H. Gold.
https://www.madhedgefundtrader.com/wp-content/uploads/2018/10/Donald-H-Gold.png358241MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-30 09:39:012018-10-30 09:39:01October 30, 2018 - Quote of the Day
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
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-30 09:02:462018-10-30 09:02:46October 30, 2018 - MDT Pro Tips A.M.
Anti-AI physicist Professor Stephen Hawking was a staunch supporter of preserving human interests against the future existential threat from machines and artificial intelligence (AI).
He was diagnosed with motor neuron disease, more commonly known as Lou Gehrig's disease, in 1963 at the age of 21 and sadly passed away March 14, 2018, at the age of 76.
Famed for his work on black holes, Professor Hawking represented the human quest to maintain its superiority against quickly advancing artificial acculturation.
His passing is a huge loss for mankind as his voice was a deterrent to AI's relentless march to supremacy. He was one of the few who had the authority to opine on these issues. Gone is a voice of reason.
Critics have argued that living with AI poses a red alert threat to privacy, security, and society as a whole. Unfortunately, those most credible and knowledgeable about AI are tech firms. They have shown that policing themselves on this front is remarkably unproductive.
Mark Zuckerberg, CEO of Facebook (FB), has labeled naysayers as irresponsible and dismissed the threat. After failing to prevent Russian interference in the last election, he is exhibiting the same defensive posture translating into a de facto admission of guilt. His track record of shirking accountability is becoming a trend.
Share prices will materially nosedive if AI is stonewalled and development stunted. Many CEOs who stake careers on doubling or tripling down on AI cannot see it die out. There is too much money to lose.
The world will see major improvements in the quality of life in the next 10 years. But there is another side of the coin in which Zuckerberg and company refuse to delve into the dark side of technology.
Defective Amazon (AMZN) Alexa has been producing unexplained laughter because of a mistaken command to start laughing. Despite avoiding calamity, these small events show the magnitude of potential chaos capable of haywire AI functions. If one day, a user attempts to order a box of tissues and Alexa burns down the house, who is liable?
Tesla's (TSLA) CEO Elon Musk has shared his anxiety about robots flipping the script on humans. Elon acknowledges that AI and autonomous vehicles are important factors in the battle for new technology. The winner is yet to be determined as China has bet the ranch with unlimited resources from Chairman Xi.
Musk has hinted that robots and humans could merge into one species in the future. Is this the next point of competition among tech companies? The future is murky at best.
Bill Gates noted that robots should be taxed like humans. This reflects the bubble in which the ultra-elite reside. This comment implies that humans and robots are on the same level and shows a severe lack of empathy for the 40% of working Americans who will be replaced by machines over the next 10 years.
The West is comprised of a deeply hierarchical system of winners and losers. Hawking's premise that evolution has inbuilt greed can be found in the underpinnings of America's economic miracle.
Wall Street has bred a culture that is entirely self-serving regardless of the bigger system in which it finds itself.
Most of us are participating in this perpetual money game chase because our system treats it as a natural part of life. AI will help more people do well in this paper chase to the detriment of the majority.
Quarterly earnings performance is paramount for CEOs. Return value back to shareholders or face the sack in the morning. It's impossible to convince anyone that America's capitalist model is deteriorating in the greatest bull market of all time.
Wall Street has an insatiable hunger for cutting-edge technology from companies that sequentially beat earnings and raise guidance. Flourishing technology companies enrich the participants creating a Teflon-like resistance to downside market risk.
The issue with Professor Hawking's work is that his time frame is too far in the future. Professor Hawking was probably correct, but it will take 25 years to prove it.
The world is quickly changing as science fiction becomes reality. The year 2019 will signal the real beginning of AI in tangible form when autonomous fleets flood main streets.
People on Wall Street are a product of the system in place and earn a tremendous amount of money because they proficiently execute a specialized job. Traders are busy focusing on how to move ahead of the next guy.
Firms building autonomous cars are free to operate as is. Hyper-accelerating technology spurs on the development of AI, machine learning and enhanced algorithms. Record profits will topple and investors will funnel investments back into an even narrower grouping of technology stocks.
Professor Hawking said we need to explore our technological capabilities to the fullest in order to avoid extinction. In 2018, exploring these new capabilities still equals monetizing through the medium of products and services.
This is all bullish for equities as the leading companies associated with AI will not be subject to any imminent regulation, blowback or government intervention.
The only solution is keeping companies accountable by a function of law or creating a third-party task force to regulate AI.
In 2018, the thought of overseeing robots sounds crazy. However, by 2019, it might be as normal as uncontrollable laughter from your smart home.
https://www.madhedgefundtrader.com/wp-content/uploads/2018/03/hawking-1-e1521135518277.jpg226255Douglas Davenporthttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngDouglas Davenport2018-10-30 01:06:472018-10-29 19:02:25How Artificial Intelligence Will Enhance or Destroy Your Portfolio
The Five Most Important Things That Happened Today
(and what to do about them)
1) IBM Takes Over Red Hat (RHT) for $33 Billion, the third largest merger in history. It’s a little too late for Big Blue as the stock falls on the news. Click here.
2) Apple Earnings Are Out on Thursday, the big number of the month. Expectations are high. They’ll probably announce a new Mac and iPad. Click here.
3) Stocks Hit a Two-Year Valuation Low, as retail investors dump stocks on a massive scale. Multiples for next year’s earnings have plunged from 18.32 to 15.55. Sounds like a deal to me! Click here.
4) Tesla Stock Soars Again, in the wake of the first profit in two years, as Elon Musk says his $20 million fine is “worth it”. Coming back from Lake Tahoe this weekend I saw over a dozen trucks delivering brand new Tesla 3’s east. Click here.
5) Germany’s Angela Merkel Steps Down as Party Head, but remains as chancellor, sending the Euro (FXE) crashing and the US dollar (UUP) soaring. As if we needed more instability. Click here.
Published today in the Mad Hedge Global Trading Dispatch and Mad Hedge Technology Letter:
(THE MARKET OUTLOOK FOR THE WEEK AHEAD, or THE COMING 2018 REPLAY),
(TLT), (SPY), (VIX), (VXX), (AAPL),
(FB), (AMZN), (NFLX), (TESLA),
(A COW-BASED ECONOMICS LESSON)
(THE DIGITAL NOMAD ISSUE)
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-29 14:50:572018-10-29 14:51:20Mad Hedge Hot Tips for October 29, 2018
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.Read more
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-29 13:48:372018-10-29 13:55:55Trade Alert - (TLT) October 29, 2018 BUY
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.Read more
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-29 12:49:492018-10-29 14:12:33Trade Alert - (AMZN) October 29, 2018 BUY
When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.Read more
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png00MHFTFhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMHFTF2018-10-29 11:24:052018-10-29 14:13:43Trade Alert - (AAPL) October 29, 2018 TAKE PROFITS
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.