Featured Trades: (THE VOLATILITY SPIKE), (VIX) 3) The Volatility Spike. For those of you who have not seen a volatility spike happen before, this is what it looks like up close and ugly. This is why many hedge funds keep a long volatility position on their back book as a kind of diaster insurance.
'ECB president Jean-Claude Trichet is dangerous. It is ridiculous to talk about raising rates when these countries are so weak. You really only have a recovery in one country, and that is in Germany,' said my old mentor, Barton Biggs, founder and managing partner of the giant hedge fund Traxis Partners.
Featured Trades: (PARIS STRATEGY LUNCHEON) Note To Subscribers: For anyone who upgrades from the Diary of a Mad Hedge Fund Trader daily newsletter to the Macro Millionaire trading service this month, the first $100 will be donated to the Japanese Red Cross for earthquake relief. I have been in touch with its officials and the
Featured Trades: (WHAT THE EARTHQUAKE MEANS FOR THE US MARKET) 2) What the Japanese Earthquake Means for the US Market. I went into the Japanese earthquake positioning for a big 'RISK OFF' trade, and it now looks like we are getting it in spades. The black swans are alighting. So how much damage is
EMERGENCY JAPAN EARTHQUAKE UPDATE Featured Trades: (EWJ), (FXY), (YCS), (TLT), (SPY), (VIX), (USO) 1) I just got off the phone with several frightened, somewhat dazed survivors of the Japanese earthquake who work in the financial markets, and I thought it important to immediately pass on what they said. Some were clearly terrified. Japan's economic
'In order to make money in the market, you have to be an independent thinker,' said hedge fund titan Ray Dalio of Bridgewater Associates.
Featured Trades: (THE BEAR MARKET IN BONDS TAKES A BREATHER), (TLT), (TBT) 2) The Bear Market in Treasury Bonds Takes a Breather. I have been a huge bear on the Treasury bond market, much to the delight of my readers for the past six months, who have made fortunes from this advice. I know
Featured Trades: (ROLL CALL OF THE DEAD), (SPX), (QQQQ), (EEM), (EFA) 3) Roll Call of the Dead. I guess that market didn't like my prediction yesterday that they were gearing up for a sell off (click here for 'Are the Equity Markets Headed for a Fall'). What a difference a day makes! Today, the
Featured Trades: (ARE THE EQUITY MARKETS HEADED FOR A FALL?) 1) Are the Equity Markets Headed For a Fall? On this two year anniversary of the great bull market, one has to ask if it is about to die of old age. Take a look at the chart below showing investor sentiment. The last time
Featured Trades: (A TOUCHDOWN FOR USC) 3) A Touchdown for USC. My alma mater, the University of Southern California (one of my several alma maters) announced in a full page ad in the New York Times today that they had received their largest private donation in their history. As a third generation alumni of
