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Mad Hedge Fund Trader

August 27, 2013

Diary, Newsletter, Summary

Global Market Comments
August 27, 2013
Fiat Lux

Featured Trade:
(THE TECHNICAL/FUNDAMENTAL TUG OF WAR),
(SPY), (INDU), (IWM),
(AND MY PREDICTION IS?.),
(TESTIMONIAL),
(THERE ARE NO GURUS)

SPDR S&P 500 (SPY)
Dow Jones Industrial Average (INDU)
iShares Russell 2000 Index (IWM)

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 Trader2013-08-27 09:08:272013-08-27 09:08:27August 27, 2013
Mad Hedge Fund Trader

August 26, 2013

Diary, Newsletter, Summary

Global Market Comments
August 26, 2013
Fiat Lux

Featured Trade:
(RIDING WITH TREASURY SECRETARY JACK LEW)

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 Trader2013-08-26 08:45:052013-08-26 08:45:05August 26, 2013
Mad Hedge Fund Trader

August 23, 2013

Diary, Newsletter, Summary

Global Market Comments
August 23, 2013
Fiat Lux

Featured Trade:
(HOW US JOB LOSSES WILL END),
?(FXI), (PIN), (EWY), (VNM),
(OPTIONS FOR THE BEGINNER)
(BRING BACK THE UPTICK RULE!)

iShares China Large-Cap (FXI)
PowerShares India (PIN)
iShares MSCI South Korea Capped (EWY)
Market Vectors Vietnam ETF (VNM)

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 Trader2013-08-23 01:06:142013-08-23 01:06:14August 23, 2013
Mad Hedge Fund Trader

Options for the Beginner

Diary, Newsletter

I strongly urge readers of this letter to log on to Amazon and by a copy of Options for the Beginner and Beyond by W. Edward Olmstead. Options contracts offer investors a wonderful instrument for minimizing risk, while maximizing the upside, and I am going to recommend many more such strategies in the future.

So, if you want to have the slightest idea of what I am talking about, get yourself some grounding in this important field by reading this book. You don?t have to be a math genius to figure this stuff out, and the risk reward benefits are great.

Olmstead, a math professor at Northwestern University, starts out with a basic Options 101 course, going into the merits of puts and calls. He catalogues the exchanges where they are listed, and the vast number of products that can be traded, including stocks, bonds, commodities, currencies, and precious metals.

He goes into the mundane, but important details on the administration side of things, such as settlements. For the more technically inclined, he launches into options theory pricing, and goes into the origins and utility of the Black-Scholes equation. We learn about the arcane world of what traders call ?the Greeks?, the deltas, thetas, and vegas of individual positions. He then launches into basic option strategies, like call and put spreads, ratios, straddles, strangles, collars, and condors.

Don?t let these terms scare you off. It is really much easier than it sounds. In fact, you will be kicking yourself once you find out how easy it is. In order to buy the book at a discounted price and give yourself a genuine trading edge, just click here.

Options for the Beginner and Beyond

 

https://www.madhedgefundtrader.com/wp-content/uploads/2013/05/Options-for-the-Beginner-and-Beyond.jpg 401 289 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2013-08-23 01:04:522013-08-23 01:04:52Options for the Beginner
Mad Hedge Fund Trader

August 22, 2013

Diary, Newsletter, Summary

Global Market Comments
August 22, 2013
Fiat Lux

Featured Trade:
(WHY I SOLD OIL),
?(USO), (UNG), (UUP)
(SALUTING THE ?OLD BREED?)

United States Oil (USO)
United States Natural Gas (UNG)
PowerShares DB US Dollar Index Bullish (UUP)

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 Trader2013-08-22 12:51:552013-08-22 12:51:55August 22, 2013
Mad Hedge Fund Trader

August 21, 2013

Diary, Newsletter, Summary

Global Market Comments
August 21, 2013
Fiat Lux

Featured Trade:
(WHY YOU SHOULD BUY THIS DIP),
?(SPX), (IWM), (INDU),
(THE BIPOLAR ECONOMY),
(TESTIMONIAL)

S&P 500 Index (SPX)
iShares Russell 2000 Index (IWM)
DJ Industrial Average (INDU)

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 Trader2013-08-21 09:09:272013-08-21 09:09:27August 21, 2013
Mad Hedge Fund Trader

The Bipolar Economy

Diary, Newsletter

Corporate earnings are up big! Great! Buy! No wait! The economy is going down the toilet! Sell! Buy! Sell! Buy! Sell! Help! Anyone would be forgiven for thinking that the stock market has become bipolar. According to the Commerce Department?s Bureau of Economic Analysis, the answer is that corporate profits account for only a small part of the economy. Using the income method of calculating GDP, corporate profits account for only 15% of the reported GDP figure. The remaining components are doing poorly, or are too small to have much of an impact. Wages and salaries are in a three decade long decline. Interest and investment income is falling, because of the low level of interest rates and the collapse of the housing market. Farm incomes are up, but are a small proportion of the total. Income from non-farm unincorporated business, mostly small business, is unimpressive. It gets more complicated than that. A disproportionate share of corporate profits are being earned overseas. So multinationals with a big foreign presence, like Intel, Oracle (ORCL), Caterpillar (CAT), and IBM (IBM), have the most rapidly growing profits and pay the least amount in taxes. They really get to have their cake, and eat it too. Many of their business activities are contributing to foreign GDP?s, like China?s, more than they are here. Those with large domestic businesses, like retailers, earn less, but pay more in tax, as they lack the offshore entities in which to park them. The message here is to not put all your faith in the headlines, but to look at the numbers behind the numbers. Those who bought in anticipation of good corporate profits last month, got those earnings, and then got slaughtered in the marketplace. Caveat emptor. Buyer beware.

What?s In the S&P 500?

Whats in the S&P Chart

Girl-Sad Has the Market Become Bipolar?

https://www.madhedgefundtrader.com/wp-content/uploads/2013/08/Girl-Sad.jpg 327 437 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2013-08-21 09:05:252013-08-21 09:05:25The Bipolar Economy
Mad Hedge Fund Trader

August 20,2013

Diary, Newsletter, Summary

Global Market Comments
August 20, 2013
Fiat Lux

Featured Trade:
(I?M BACK!)

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 Trader2013-08-20 01:04:102013-08-20 01:04:10August 20,2013
Mad Hedge Fund Trader

I?m Back!

Diary, Newsletter

I sit here at Virgin Atlantic?s upper class lounge at London?s Heathrow airport, awaiting their transcontinental nonstop service to San Francisco, listening to Bach?s Sonata No.1 in G Minor on my headphones. I am returning from a two-month tour of Europe that was highly informative, exciting, and even mind expanding. The proof is the ten new pounds that I am packing under my belt.

John Thomas - Heathrow

Living in the US, all I hear about are America?s weaknesses and the strength?s of foreign countries, mostly China. Traveling abroad, one is barraged with admiration for our country?s strengths and endless mewling about their weaknesses. So to look at the United States objectively, it is necessary to spend a certain amount of time abroad. This I did in spades.

It was first class and five stars all the way. I?m talking palaces, presidential suites, and Michelin three star restaurants. My credit card is worn out, the magnetic strip a mere fragment of its former self, and shall be retired to stud when I get home. PayPal is laughing all the way to the bank. As for my travel blazer, it needs to be shot and buried, being far beyond the reach of even the most diligent dry cleaner.

My global strategy luncheons in London, Amsterdam, Berlin, Frankfurt, Portofino, Mykonos, and Zermatt were a blowout success. Several venues required rebooking to larger facilities to accommodate greater than anticipated numbers.

It appears that a 37% return in a year when everyone else is tearing their hair out is a real crowd draw. All went away with a broadened view of the world, and I picked up some first class intelligence. It was well worth the investment for all.

The adventures came fast and furious. I picked up a new fedora at Locke & Co., just down St. James Street from my old office at The Economist magazine, the firm that supplied Lord Nelson of Trafalgar and all the kings and queens of England with their fine hats. Tea at the Ritz is a people watching experience par excellence.

John Thomas - Fedora

The red light district in Amsterdam has gone tourist, with families perusing the bikini clad ladies of the evening in the bay windows, who are now mostly from Russia. After a major cleaning job, Rembrandt?s Night Watch looks even better than it did when I first saw it 45 years ago. The international flower market performed a logistical masterpiece that would have done the founders of the original Dutch East India Company proud.

Intl Flower Market

The city of Dresden was a cultural gem long outside my reach in the old communist East Germany. The shadow of the mass firebombing that killed most of the population in 1945 is ever present. Looking at the crown jewels of the Saxon kings, it is easy to understand from where the anti tax movement sprung.

Bell Person - Grand Hotel

It was an emotional moment for me riding my bicycle across the site of the former Berlin Wall. Where machine guns once threatened, a million flowers now bloom. My deluxe accommodations at the Hotel Adlon were the old wartime Gestapo headquarters. That is a vast improvement over the dilapidated student dormitory where I stayed in the sixties, which, remarkably, is still standing. Goering?s solidly built Air Ministry still exists just down the street, an Art Deco tour de force. Scouring the city?s vintage shops, I managed to score an Italian embroidered suede alpine jacket that fit perfectly for only ?8.

John Thomas - Berlin

My free afternoon in Frankfurt?s botanical gardens saw me curiously exploring such oddities as barrel cactus, cholla, and octillo, the kinds of flora we have in abundance in the deserts back home.

Portofino, on the Italian Riviera, was beautiful to look at, but was plagued by European summer vacations crowds that are typical for this time of year. One only hoped that the competing Russian oligarchs attempting to maneuver their mega yachts into the village?s tiny harbor didn?t break out into a shooting war. Watching a pod of dolphins race with the bow of our own ship made it all worth it.

John Thomas - Portofino

The worst nightmare of the trip was the check in at budget Meridian Airlines for the flight to Mykonos. It was me and 200 hard partying Italian kids. The seats were jammed so close together I nearly suffered a double amputation (see photo below). It was so disorganized I barely made the flight. Better to leave the Italians to food, fashion, and race cars, than to running airlines and cruise ships.

Airline Seats

With Italy in its third year of recession, the bargains in Milan were to die for. The children are outfitted for the next two years. I even bought clothes for people I didn?t like, and shipped them home in suitcases bought at 50% off. Only the 100 degree heat and the clouds of mosquitoes drove me away from a longer stay. There?s nothing like flaunting death in a taxi racing to the airport at 100 miles per hour tailgating the car in front by ten feet.

Mykonos was the first ?sit on the beach and do nothing? holiday I?ve enjoyed in many years. But I still got a lot of writing done between racing around the island on a beat up quadracycle and the girls dancing on the tables.

I finally made it to the top of the Matterhorn in Switzerland, all 14,800 feet of it. Knock that item off the bucket list. What I hadn?t bargained for was the rescue effort I got involved in on the way down. More on that in a future piece. Zermatt is a fantasy destination that I will keep returning to every year to climb as long as I live. Having just bagged my 45 year pin from the tourist bureau, can I shoot for 90?

I completed my journey by climbing the highest mountain in Wales, Mount Snowdon. The weather was perfect, rare for this part of the world. I took it as a good omen for the future. Scaling rocky crags, the view of the lakes and the Irish Sea was breathtaking. By then I was just plum worn out from traveling, and longed for my own bed and the morning edition of the San Francisco Chronicle, even one soaked by the sprinklers. California wine is looking pretty good right now, with the fall harvest fast upon us.

I return with a new lease on life, my batteries recharged, and chomping at the bit. It doesn?t hurt that my Trade Alert performance is tickling yet another all time high, up 92% since inception two and a half years ago. I?ll get some new Trade Alerts out soon to throw the hard core traders among you some red meat. It is going to be a very good year.

Many thanks for all your support. You, the readers, make it all worth it.

I?m on the plane now, two hours into the Atlantic. Below are the endless glaciers and snowfields of Greenland. I?ve made it all the way to Bach?s Partita No. II in D Minor. Iceland is in our rear view mirror. The stewardess is asking me to make room for my steak and cabernet. So that?s it for now.

https://www.madhedgefundtrader.com/wp-content/uploads/2013/08/John-Thomas-Heathrow.jpg 375 500 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2013-08-20 01:03:072013-08-20 01:03:07I?m Back!
Mad Hedge Fund Trader

August 19, 2013

Diary, Newsletter, Summary

Global Market Comments
August 19, 2013
Fiat Lux

Featured Trade:
(HOW THE GOVERNMENT UNDERSTATES THE ECONOMY),
(HOW TO GET A FREE TRIP TO EUROPE)

 

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 Trader2013-08-19 01:05:392013-08-19 01:05:39August 19, 2013
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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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