?Life is either a daring adventure, or nothing,? said Helen Keller, a deaf and blind advocate for the disabled.
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.
Further Update to: Trade Alert -(TLT)
Buy the iShares Barclay 20+ Year Treasury Bond Fund (TLT) July, 2014 $118-$121 in-the-money bear put spread at $2.55 or best
Opening Trade
5-29-2013
expiration date: July 18, 2014
Portfolio weighting: 10%
Number of Contracts = 39 contracts
We?ve just had a four point run in the latest leg up in the incredible bull market in bonds. We could be in for some month end profit taking. The upper $118 strike works out to a 10 Year Treasury Bond yield of 2.27%.
As long as yields stay above that by the July 18 expiration, we will keep the entire profit on this trade. Better yet, get a three point dip anywhere along the way and we will immediately reap 75% of the profit, as we did with our last (TLT) bear put spread.
I think this week flushed out a lot of the hotter short term money from the market in the humongous short squeeze that I warned you about. Positioning is now flatter. Mad Day Trader Jim Parker also thinks we could be in for a major trend reversal with next week?s Friday nonfarm payroll report.
In the meantime, the (TLT) could rise as much as a point higher to $116. That still gives me plenty of breathing room with this position, which has a breakeven point at $118.45, or a ten year Treasury yield of 2.25%. That sounds like a pretty good bet for me, now that we are headed into the slower summer months.
The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous. Don?t execute the legs individually or you will end up losing much of your profit.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.
Here are the specific trades you need to execute this position:
Buy 39 July, 2014 (TLT) $121 puts at?????$6.90
Sell short 39 July, 2014 (TLT) $118 puts at..??.$4.35
Net Cost:??????????????????.....$2.55
Potential Profit: $3.00 - $2.55 = $0.45
(39 X 100 X $0.45) = $1,755 or 1.76% profit for the notional $100,000 portfolio.
As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ?look over? John Thomas? shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen. Read more
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 Jim Parker, 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.
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 Jim Parker, 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.
Global Market Comments
May 29, 2014
Fiat Lux
Featured Trade:
(JUNE 23 LONDON STRATEGY LUNCHEON)
(JOHN THOMAS AND ALAN PATCHING ON HEDGE FUND RADIO),
(UUP), (FXI), (FXA), (EWA), (AAPL), (GOOG),
(GLD), (SLV), (MON), (POT), (MOS),
(AND MY PREDICTION IS?.),
(TESTIMONIAL)
PowerShares DB US Dollar Index Bullish (UUP)
iShares China Large-Cap (FXI)
CurrencyShares Australian Dollar Trust (FXA)
iShares MSCI Australia (EWA)
Apple Inc. (AAPL)
Google Inc. (GOOG)
SPDR Gold Shares (GLD)
iShares Silver Trust (SLV)
Monsanto Company (MON)
Potash Corp. of Saskatchewan, Inc. (POT)
The Mosaic Company (MOS)
During my recent trip to Australia, I had the privilege to be interviewed by Alan Patching, one of the leaders of the country?s vibrant business community, on his show, Transforming Business Minds.
Alan was the chief organizer of the 2000 Sydney Olympics. He is the author of several business books. He is also a professor at Bond University on Queensland?s Gold Coast in Australia. Patching is one of the top entrepreneurs in Australia, arranging tens of billions of dollars worth of transactions over the past decade.
During the interview, we covered about every asset class under the sun, looking for long and short opportunities. I discussed the ongoing global synchronized economic recovery and the implications for the market. I also covered the global geopolitical scene in depth.
I go into why the US dollar will remain a reserve currency. I explain how wars of the last 50 years were all about oil, and in the next 50 years they will revolve around food and water supplies. I analyze Apple?s (AAPL) prospects in depth.
Chinese money will continue to pour into Australia. I even reminisce about flying the best Russian fighters in the early nineties. There was that time when the CIA helped get my late wife out of a Russian jail. And, oh yes, I explain why the Dow Average is going to 200,000 by 2030!
I have broken up the extensive hour and a half interview into three 30-minute segments. You can purchase each one for $4.95 on Hedge Fund Radio by clicking: ?http://madhedgefundradio.com/radio-show/.
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 Jim Parker, 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.
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 Jim Parker, 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.
Global Market Comments
May 28, 2014
Fiat Lux
Featured Trade:
(JULY 25 ZERMATT, SWITZERLAND GLOBAL STRATEGY SEMINAR)
(THE 60-40 CORRECTION),
(SPY), (QQQ), (IWM), (TLT), (FXY), (GLD), (IBB),
(COME TO THE JUNE 13-14 INVEST LIKE A MONSTER LAS VEGAS CONFERENCE)
SPDR S&P 500 (SPY)
PowerShares QQQ (QQQ)
iShares Russell 2000 (IWM)
iShares 20+ Year Treasury Bond (TLT)
CurrencyShares Japanese Yen Trust (FXY)
SPDR Gold Shares (GLD)
iShares Nasdaq Biotechnology (IBB)