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Mad Hedge Fund Trader

Trade Alert - (FB) July 9, 2021 - SELL-TAKE PROFITS

Tech Alert

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://www.madhedgefundtrader.com/wp-content/uploads/2016/02/Alert-e1457452190575.jpg 135 150 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-09 11:17:462021-07-09 11:17:46Trade Alert - (FB) July 9, 2021 - SELL-TAKE PROFITS
Mad Hedge Fund Trader

July 9, 2021

Diary, Newsletter, Summary

Global Market Comments
July 9, 2021
Fiat Lux

Featured Trade:

(SOME BASIC TRICKS FOR TRADING OPTIONS)

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Mad Hedge Fund Trader

July 9, 2021 - Quote of the Day

Diary, Newsletter, Quote of the Day

“It’s not always the troops that storm the beaches who are the right ones to set up the government,” said Steve Vassallo from Foundation Capital about the resignation of founder Travis Kalanick from Uber.

https://www.madhedgefundtrader.com/wp-content/uploads/2020/09/war.png 336 538 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2021-07-09 11:00:252021-07-09 11:34:00July 9, 2021 - Quote of the Day
Mad Hedge Fund Trader

July 8, 2021

Biotech Letter

 

Mad Hedge Biotech & Healthcare Letter
July 8, 2021
Fiat Lux

FEATURED TRADE:

(TURNING THE BIOHACKERS’ DREAM TO REALITY)
(NEO), (AZN), (GSK), (ABBV), (ILMN), (TMO), (TXG), (BLUE), (CRSP), (EDIT)

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 Trader2021-07-08 15:02:282021-07-08 16:09:03July 8, 2021
Mad Hedge Fund Trader

Turning the Biohackers' Dream to Reality

Biotech Letter

There is a huge possibility that the first person to ever live to a thousand years old has been born in our lifetime.

That’s according to experts on life longevity. They also say that sooner rather than later, we’ll simply be checking ourselves into hospitals or clinics once every decade.

Pretty much how you’d bring your car in for a service, that’s how we’ll keep our bodies working at peak condition for centuries.

As far-fetched as it sounds, it’s undeniable that dreams of achieving immortality are as old as mankind itself.

One of the leading experts on this is the Human Longevity, Inc., which has leading genomics expert J. Craig Venter and billionaire Peter Diamandis as its founders.

Although it’s still not yet a publicly-traded company, Human Longevity, Inc. has been collaborating with cancer diagnostics firm Neogenomics (NEO).

Admittedly, NEO’s $5.32 billion market capitalization doesn’t really boost that much confidence in this company.

However, Human Longevity’s work with a Big Pharma company like AstraZeneca (AZN), which holds a market cap of $158.14 billion, definitely backs up its claims.

Moreover, AstraZeneca and Human Longevity are already halfway through their 10-year agreement that dates back to 2016.

Basically, what Human Longevity does is sequence an individual’s DNA and combine the information with an extensive list of tests to figure out how long that person will live and what steps can be taken to extend his or her life.

More impressively, the company can use the data to predict a budding disease, such as cancer, even before it exhibits symptoms. 

And how much will that cost you?

Right now, the company is charging $25,000 for a comprehensive set of tests and a full profile.

In the end, you’d be given medical information about yourself that amounts to roughly 1 petabyte. For context, that’s 1,000 terabytes or 1 million GB worth of data.

While the cost is definitely high, it’s a good preventive measure to consider if you can spare the cash.

This is because the company can detect the slightest hint of diseases, which are typically at their most treatable phase.

Since the company is founded on the belief that we are all “DNA software-driven species,” it can also determine the disease-producing genes in our systems and use them as “pharmaceutical targets, so that people with those genetic changes don’t die.”

Aside from Human Longevity, another company working on this nice is called Life Biosciences, which was founded in 2017.

Since its launch, Life Biosciences has been acquiring companies left and right to boost its pipelines.

So far, it has at least 6 subsidiaries focused on developing treatments to fight the human aging process.

What makes Life Biosciences different is that it doesn’t focus on the leading causes of death, such as cardiovascular diseases or cancer.

Instead, it tries to figure out what are the underlying causes of the body’s aging. This includes stem cell exhaustion, cellular senescence, chromosomal instability, and even our metabolism.

At their core, Life Biosciences’ belief is that aging itself should not be considered a natural biological result of the passage of time.

Rather, it should be understood as a medical condition—the kind that can be treated in the same way we’d try to find medications or cures for diseases.

While Life Biosciences’ work has yet to earn any FDA approval, the involvement of GlaxoSmithKline (GSK) in its aging research seems to boost confidence in the company’s work.

Apart from GSK, a number of tech billionaires have expressly backed these efforts in the anti-aging field.

The most visible ones include Calico, which is backed by Google and AbbVie (ABBV), and Unity Biotechnology, supported by Jeff Bezos.

While Human Longevity and Life Biosciences have yet to go on IPO, there are already companies working on fields related to life longevity.

The first names that come to mind are the frontrunners of the genome sequencing market, such as Illumina (ILMN), Thermo Fisher Scientific (TMO), and 10x Genomics (TXG).

Smaller companies in this field include bluebird Bio (BLUE), CRISPR Therapeutics (CRSP), and Editas Medicine (EDIT).

Inasmuch as this is difficult to grasp at this stage, there is a massive market for this industry. In fact, the global longevity segment is projected to reach $27 trillion in 2026, which accounts for roughly 20% of the global GDP. 

Meanwhile, the global market for human aging is estimated to reach at least $55 billion by 2023.

And those are just conservative estimates.

Making the public accept the idea behind longevity science has not been easy. Even with Big Pharma names backing these innovative companies, people are still wary of the concept.

After all, surveys show that most people would refuse medical treatments to slow their aging and allow them to live up to 120 or older. It’s not surprising why.

Those respondents probably witnessed how their older grandparents and parents spent their final years in pain and were subjected to invasive medical procedures. That makes the entire idea of living so long horrific to them.

However, the future imagined by these companies is different. Through their research, people can live long and still enjoy active and healthy lifestyles.

At this point, the longevity science space remains a playground dominated by a handful of transhumanists and even biohackers.

Nonetheless, the entry of the most respected researchers and the support from the biggest biopharmaceutical companies across the globe give hope that the promises the industry holds will become a reality soon.

Human longevity

 

human longevity

 

 

 

 

 

 

 

 

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Mad Hedge Fund Trader

July 8, 2021

Diary, Newsletter, Summary

Global Market Comments
July 8, 2021
Fiat Lux

Featured Trade:

(TESTIMONIAL)
(A BUY-WRITE PRIMER), (AAPL)

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 Trader2021-07-08 09:06:472021-07-08 11:53:35July 8, 2021
Mad Hedge Fund Trader

Testimonial

Diary, Newsletter

John, I couldn’t be happier with your service, and the way you operate your business. I love it! And I recommend you to my relatives and my good friends when appropriate. I feel very grateful and blessed to have been introduced to your information and your person even though not in person.  

I’m in Tesla (TSLA), Advanced Micro Devices (AMD), NVIDIA (NVDA), Boeing Aircraft (BA), and Apple (AAPL).

I paid $500,000 down for a million-dollar home in Anthem, CA with my profits and it is now worth $1.5 million.  We have remodeled it into our dream home, and I have my own golf cart in the garage.

I couldn’t feel more fortunate to have come across you. I read your Mad Hedge Hot Tips and diary every day and I feel you keep me in the know with how the market is moving. 

I took the opportunity when it came last year and went all-in under your guidance. It has changed my and my wife and five children’s lives for the better. 

Here is a pic of our Model Y and Tesla solar on our new 4,000’ Executive home. Peace and all the best, and best of luck with your daughters and Boy Scouts. 

Greg
Anthem, CA

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Mad Hedge Fund Trader

July 7, 2021

Tech Letter

Mad Hedge Technology Letter
July 7, 2021
Fiat Lux

Featured Trade:

(SHOULD YOU BUY THE ROBINHOOD IPO?)
(HOOD), (COIN), (PLTR)

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 Trader2021-07-07 13:04:312021-07-07 15:36:04July 7, 2021
Mad Hedge Fund Trader

Should You Buy the Robinhood IPO?

Tech Letter

Robinhood (HOOD) is an American financial services company headquartered in Menlo Park, California, known for offering commission-free trades of stocks, exchange-traded, and cryptocurrencies via a mobile app introduced in March 2015.

After perusing their S-1, I can’t help but offer the same recommendation I gave readers for the Coinbase (COIN) listing, which proved to be spot on.

Although this is a real company with real revenues, the growth rates are particularly high because of a one-off phenomenon in alternative asset classes.

I would urge readers to not buy shares of HOOD directly after they are public but instead wait for an entry point sometime after the lock-up period expiration which usually coincides with the insiders and long-time employees unloading shares or a partial trove of them.

The same happened to Palantir (PLTR) which saw a meaningful sell-off upon the lock-up expiration and although PLTR shares are higher today than they were the day of lock-up expiration, it’s better to avoid that dip if you can. PLTR had a big dip when the lock-up expired presenting a great entry point into shares.

Lock-up periods are usually 180 days and I firmly believe this company that will be trading under the ticker symbol HOOD, is not worth paying a premium before that 180-day lock-up period is over.

Don’t be that sucker.

To dovetail with my thesis of not buying HOOD too early is the analysis of their inherent high stakes/ high rewards nature of the business.

Let’s not fudge the details, this is a high-risk business and as of now, they have been handsomely rewarded for it, but that might not always be the case.

They pioneered commission-free trading when the likes of Fidelity and Charles Schwab were still charging $15 to execute one side of a trade.

Why can they offer free trading?

Order history is paid for by third-party high-frequency traders, namely Citadel.

Citadel accounts for 27% of payments for Robinhood retail order flow, and Payment for order flow is 81% of total Robinhood revenue.

The thinking behind buying order flow is to then apply the data through machine learning to even front-run orders of normal retail traders and profit off the spread or micromovements in shares.

They even make markets with their liquidity and trade their own proprietary books.

And yes, this is legal in the United States and companies have gone gangbusters in high-frequency trading (HFT) like Virtu Financial founded by Vincent Viola who owns the NHL franchise Florida Panthers and is big into competing for his horses at the Kentucky Derby.

It obviously pays to do HFT, and if done properly, are great businesses and these are the companies propping up HOOD today.

Robinhood has taken advantage of the Millennial lust to go crypto or go home.

The numbers back me up — $11.6 billion of crypto under custody by the end of Q1.

Bitcoin was the HOOD’s most traded asset in 2020 and the first quarter of 2021 and 17% of total revenue came from crypto in Q1, (compared to 4% in Q420)

In the S-1, it said that HOOD’s business “may be adversely affected, and growth in our net revenue earned from cryptocurrency transactions may slow or decline, if the markets for Dogecoin deteriorate or if the price of Dogecoin declines.”

HOOD and its future success are now uniquely levered towards alternative coin Dogecoin which is now 34% of their total crypto revenue in Q1.

This is the altcoin that Elon Musk joked about, and it explains the 54% growth of 2020 revenue in the first 3 months of 2021.

This is an incredibly high-risk growth strategy that won’t work out every quarter.

HOOD now has 18 million cumulative funded accounts showing the popularity of the business and did $522M in 1Q21 revenue vs. $127.6M in 1Q20 and did $958.8M in revenue in '20 reporting $7.5M in net income.

The median age of customers on HOOD’s platform is 31 and over 50% are first-time investors so if they nurture this customer base, this could be a sticky business moving forward.

If they lead them down this treacherous Dogecoin cliff, it could be trouble and result in terrible quarterly earnings.

A few other risks I felt notable was that Robinhood users went from holding/trading $400M of crypto to $11.5B of crypto from March 2020 to 2021, but HOOD intends to potentially never offer delivery of customer crypto purchases.

This means they are exposed to derivative contracts which just layers on high risk on top of high risk.

Robinhood said there is tremendous regulatory risk for its stock with the company fined $70 million by the securities industry's self-regulator, FINRA, for misleading customers and system outages that the agency said hurt Robinhood's customers.

They said they will likely incur similar fines in the future and investors will need to stomach its predisposition to skirt the law.

There is nothing low-risk about HOOD, and I would wait for a big sell-off after the lock-up expiration to get in at a certain discounted price. Readers shouldn’t blindly pay a premium for HOOD, the risk isn’t worth it.

 

HOOD

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Mad Hedge Fund Trader

July 7, 2021 - Quote of the Day

Tech Letter

“I see technology as being an extension of the human body.” – Said Canadian Film Director David Cronenberg

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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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