Global Market Comments
July 29, 2020
Fiat Lux
Featured Trade:
(PLAYING THE SHORT SIDE WITH VERTICAL BEAR PUT SPREADS),
(TLT)
Global Market Comments
July 29, 2020
Fiat Lux
Featured Trade:
(PLAYING THE SHORT SIDE WITH VERTICAL BEAR PUT SPREADS),
(TLT)
Global Market Comments
July 28, 2020
Fiat Lux
Featured Trade:
(HOW TO EXECUTE A VERTICAL BULL CALL SPREAD),
(AAPL)
Global Market Comments
July 27, 2020
Fiat Lux
Featured Trade:
(WELCOME TO THE WONDERFUL WORLD OF OPTIONS),
(WHAT IS AN OPTION? - THE BASICS)
Hi there, I’m John Thomas, the Mad Hedge Fund Trader. Welcome to my trading desk and your new job of attaining financial independence.
The coffee machine is right over there, and the bathrooms are down the hall. Don’t let all the shouting bother you. You’ll get used to it after a while.
You’ve already made one of the best business decisions in your life, signing up for my service. And you won’t just be joining me but an entire community of thousands of successful traders and investors spread around the world in 137 countries.
Some of my best ideas are really coming from them. I just pass them on to you. You should have received your password and full access to my website by now.
So, get started on your homework, learn how the markets function and figure out how to trade. Soon, you’ll have the unfair advantage in the markets that you deserve.
I have issued more than 2,000 trade alerts over the past 12 years so I have a pretty good idea what works for followers.
Every trade alert I issue gives you the choice of buying a stock, an exchange-traded fund (ETF), or an option spread.
Since we have been in a bull market for the past ten years, those who bought stock only outright made the most money. Those who used the leverage of the futures markets relied on me for their market timing and delivered the most spectacular profits, and by spectacular, I mean 1,000% in a single year.
However, those who used option spreads earned the most money with the least risk over time. I know when some of you hear the word “option”, you want to run a mile.
However, if you are willing to invest of few hours of your time learning about options, you will have a trading and investment skill that you can use for the rest of your life. And I’ll be doing the heavy lifting for you.
When you subscribed to this service, you effectively added 50 years of trading experience on your own.
The good news is that options are not that hard to figure out.
If you can turn on a computer, click your mouse, and log into your online trading account, you have all the resources you need to trade options.
All you have to do is get some basic training on how to navigate the options market. Finish this two-hour course, and you will have most of what you need to know.
Better yet, if you implement the options strategies and disciplines that I will teach you, you can tilt the chance of making money overwhelmingly in your favor.
Working together is going to be fun. I have a chair right here for you, so sit down, let’s get down to it and put on some serious money-making positions.
Global Market Comments
July 24, 2020
Fiat Lux
Featured Trade:
(TAKING OFF FOR VACATION),
(TESTIMONIAL)
With any luck, by the time you read this, I will be setting up my tent next to a High Sierra lake somewhere over 9,000 feet.
For I will be leading 40 Boy Scouts on a 50-mile hike around the Desolation Wilderness next to Lake Tahoe. The vertical climb for this ambitious route is 6,300 feet, which we will cover in seven days. Bears are everywhere, so we will be hanging our food from trees at night.
Usually, I am hanging out at my chalet in Zermatt, Switzerland this time of year, watching climbers descend from the Matterhorn. However, because of our poor response to the Coronavirus, Americans are banned from Europe for the foreseeable future. We are just too dangerous to let in.
My pack weighs in at a featherlike 50 pounds, including five pounds of medical supplies and a fifth of Jack Daniels, for medicinal purposes only. Gentleman Jack is excellent for sterilizing animal bites, large cuts, and gunshot wounds, and has saved my life many times.
With 40 kids under my control ranging in age from 11-17, what could possibly go wrong? At least they don’t have rattlesnakes and poison oak in the High Sierras.
The hike should take no more than 40 hours, which will give me plenty of time to think of great trades for the second half. Hopefully, I will come back refreshed, invigorated, and 20 pounds lighter.
I deserve the time off.
I have worked the hardest of my career over the last six months, going battle with the pandemic and the worst market crash in history. I knocked out 164 trade alerts, triple the normal rate. As a result, I have pulled in a stunning 28.83% profit so far in 2020, and 68.19% over the past 12 months. I know that many of you have made much more. These are the best numbers I have pulled in during 50 years of trading.
While I am communing with nature over the next two weeks, I will be sending you in daily installments FOR FREE the print edition of my best-selling book, “Options Trading for Beginners.” If you are one of the many recent new subscribers, this will give you the tools with which you can max out your profits in the coming months.
Thank you for supporting my research. Once back, I will do whatever I can to maintain your trust and continue to bring in some blockbuster numbers.
I want to take this opportunity to share an experience that has been immensely valuable to me and could be to you as well...
Over the holidays last December, a long-time buddy of mine and I were golfing Quail Creek in Green Valley, AZ. As a career money manager, he mentioned the name of John Thomas, the Mad Hedge Fund Trader. It didn’t take him long to convince me to buy Tesla in late December, based on John’s recommendation in his email, “Diary of a Mad Hedge Fund Trader” After all, Mr. Thomas had been driving the cars for 11 years and had visited the Fremont factory countless times. Soon thereafter, anyone who follows Tesla (TSLA) stock knows what happened then.
Then, in late January, John drew upon his experience as a biochemist to identify the companies that would benefit from the Covid-19 pandemic. His statement that “Biotech is today what tech was in 1990” has been a rocket so far as well.
Then, when the market crashed in March, John urged the lead chip stocks, NVIDIA, Advanced Micro Devices, and Micron Technology, which he had been following for decades. Those stocks all doubled. I also increased my position in Tesla some more.
Some six months after hearing about John Thomas, I couldn’t be more grateful. It has given me the financial security to get my family and our three kids through this pandemic while supporting the gallery as well. It has also set me up in a position I never expected through these tough times.
John has been an incredible asset to my family, I believe he could be for yours as well. I am so grateful for his guidance in this stage of my life! I personally subscribed to his biotech newsletter and trade alerts after attending his free seminars and seeing the results. I missed the tech boom of the ’90s. If biotech is the new tech, I don’t want to miss that one too! And I wouldn’t chance it without John’s guidance.
All our best to you all in these difficult times.
Sincerely,
Greg
Las Vegas
Global Market Comments
July 23, 2020
Fiat Lux
Featured Trade:
(THE BEST COLLEGE GRADUATION GIFT EVER),
(TESTIMONIAL)
Global Market Comments
July 22, 2020
Fiat Lux
Featured Trade:
(MY NEWLY UPDATED LONG-TERM PORTFOLIO),
(PFE), (BMY), (AMGN), (CELG), (CRSP), (FB), (PYPL), (GOOGL), (AAPL), (AMZN), (SQ), (JPM), (BAC), (BABA), (EEM), (FXA), (FCX), (GLD)
I am really happy with the performance of the Mad Hedge Long Term Portfolio since the last update on October 17, 2019. In fact, not only did we nail the best sectors to go heavily overweight, we completely dodged the bullets in the worst-performing ones, especially in energy.
For new subscribers, the Mad Hedge Long Term Portfolio is a “buy and forget” portfolio of stocks and ETFs. If trading is not your thing, these are the investments you can make, and then not touch until you start drawing down your retirement funds at age 70 ½.
For some of you, that is not for another 50 years. For others, it was yesterday.
There is only one thing you need to do now and that is to rebalance. Buy or sell what you need to reweight every position to its appropriate 5% or 10% weighting. Rebalancing is one of the only free lunches out there and always adds performance over time. You should follow the rules assiduously.
Despite the seismic changes that have taken place in the global economy over the past nine months, I only need to make minor changes to the portfolio, which I have highlighted in red.
To download the entire portfolio in an excel spreadsheet, please go to www.madhedgefundtrader.com , log in, go to “My Account”, then “Global Trading Dispatch”, then click on the “Long Term Portfolio” button.
My 5% holding in Biogen (BIIB) was taken over by Bristol Myers (BMY) at a hefty premium at an all-time high, so I’ll take the win. I am replacing it with Covid-19 vaccine frontrunner Bristol Myers (BMY) itself.
I am also taking out healthcare provider Cigna (CI), whose profits have been hammered by the pandemic. A future Biden administration might also move to a national healthcare system that will cap profits. I am replacing it with another Covid-19 vaccine leader Pfizer (PFE).
My 30% weighting in technology remains the same. Even though these stocks are 30% more expensive than they were three years ago, I believe they will lead the charge into the 2020s. It’s where the big growth is. These have doubled or more over the past nine months.
I am sticking with a 10% weighting in banking. Thanks to trillions in stimulus loans, they are now the most government-subsidized sector of the economy. I also believe that massive bond issuance by the US Treasury will deliver a sharply steepening yield curve, another pro bank development.
With my 10% international exposure, I am taking out a 5% weight in slow-growth Japan and replacing it with Chinese Internet giant Alibaba (BABA). The US will most likely dial back its vociferous anti-Chinese stance next year and (BABA) will soar.
I am executing another switch in my foreign currency exposure, taking out a long in the Japanese yen (FXY) and a short in the Euro (EUO) and substituting in a double long in the Australian dollar (FXA).
Australia will be a leveraged beneficiary of a recovery in the global economy, both through a recovery on commodity prices and gold which has already started, and the post-pandemic return of Chinese tourism and investment. I argue that the Aussie will eventually make it to parity with the US dollar, or 1:1.
I’m quite happy with my 10% holding in gold (GLD), which should move to new all-time highs imminently….and then go ballistic.
As for energy, I will keep my weighting at zero, no matter how cheap it has gotten. Never confuse “gone down a lot” with “cheap”. I think the bankruptcies have only just started and will stretch on for a decade. Thanks to hyper-accelerating technology, the adoption of electric cars, and less movement overall in the new economy, energy is about to become free.
My ten-year assumption for the US and the global economy remains the same.
When we come out the other side of this, we will be perfectly poised to launch into my new American Golden Age, or the next Roaring Twenties. With interest rates still at zero, oil cheap, there will be no reason not to. The Dow Average will rise by 400% or more in the coming decade. The American coming out the other side of the pandemic will be far more efficient and profitable than the old.
I hope you find this useful and I’ll be sending out another update in six months so you can rebalance once again.
Stay healthy.
John Thomas
CEO & Publisher
The Diary of a Mad Hedge Fund Trader
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.
This site uses cookies. By continuing to browse the site, you are agreeing to our use of cookies.
OKLearn moreWe may request cookies to be set on your device. We use cookies to let us know when you visit our websites, how you interact with us, to enrich your user experience, and to customize your relationship with our website.
Click on the different category headings to find out more. You can also change some of your preferences. Note that blocking some types of cookies may impact your experience on our websites and the services we are able to offer.
These cookies are strictly necessary to provide you with services available through our website and to use some of its features.
Because these cookies are strictly necessary to deliver the website, refuseing them will have impact how our site functions. You always can block or delete cookies by changing your browser settings and force blocking all cookies on this website. But this will always prompt you to accept/refuse cookies when revisiting our site.
We fully respect if you want to refuse cookies but to avoid asking you again and again kindly allow us to store a cookie for that. You are free to opt out any time or opt in for other cookies to get a better experience. If you refuse cookies we will remove all set cookies in our domain.
We provide you with a list of stored cookies on your computer in our domain so you can check what we stored. Due to security reasons we are not able to show or modify cookies from other domains. You can check these in your browser security settings.
These cookies collect information that is used either in aggregate form to help us understand how our website is being used or how effective our marketing campaigns are, or to help us customize our website and application for you in order to enhance your experience.
If you do not want that we track your visist to our site you can disable tracking in your browser here:
We also use different external services like Google Webfonts, Google Maps, and external Video providers. Since these providers may collect personal data like your IP address we allow you to block them here. Please be aware that this might heavily reduce the functionality and appearance of our site. Changes will take effect once you reload the page.
Google Webfont Settings:
Google Map Settings:
Vimeo and Youtube video embeds: