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
March 11, 2014
Fiat Lux
Featured Trade:
(MAD HEDGE FUND TRADER KILLS IT WITH A 2014 12.6% RETURN),
(TLT), (SPY), (BAC), (GM), (EBAY),
(DAL), (GS), (XLV), (XLF), (GE),
(MARCH 12 GLOBAL STRATEGY WEBINAR),
(EUROPEAN STYLE HOMELAND SECURITY)
iShares 20+ Year Treasury Bond (TLT)
SPDR S&P 500 (SPY)
Bank of America Corporation (BAC)
General Motors Company (GM)
eBay Inc. (EBAY)
Delta Air Lines Inc. (DAL)
The Goldman Sachs Group, Inc. (GS)
Health Care Select Sector SPDR?? (XLV)
Financial Select Sector SPDR?? (XLF)
General Electric Company (GE)
The industry beating performance of the Mad Hedge Fund Trader?s Trade Alert Service has maintained its gob smacking pace from last year, picking up another 12.6% profit in the first ten trading weeks of 2014.
The Dow Average was up a feeble 1.4% during the same period, pegging my outperformance of the index at a stunning 11.2%. Since the beginning of 2013, I am up 80%, with a trailing 12-month return of 51%.? 2013 closed with a total return for followers of 67.45%.
The three-year return is now an amazing 135.1%, compared to a far more modest increase for the Dow Average during the same period of only 34%. That brings my averaged annualized return up to 41.6%. Not bad in this zero interest rate world. It?s better than a poke in the eye with a sharp stick.
This has been the profit since my groundbreaking trade mentoring service was launched in 2010. Thousands of followers now earn a full time living solely from my Trade Alerts, 95% of which have been profitable this year.
Not a day goes by without finding grateful emails thanking me for changing their lives. Stories abound of mortgages paid off, college educations financed, and aging parents supported. Quite a few use my award winning mentoring service to finally achieve financial independence and told their bosses to go jump off a bridge.
I won?t pass on the pictures they sent me. To read the plaudits yourself, please go to my testimonials page. They are all real.
The hot streak continues.
I managed to call the double top in the Treasury bond market (TLT), and picked up some easy money on the short side. Crucially, I was one of the first to catch the leadership change in the market, out of technology and health care (XLV) and into banks (XLF), (BAC), (GS) and autos (GM).
On top of this, I bought some long exposure in classic old-line deep cyclicals, like General Electric (GE) and (Delta Airlines (DAL). Finally, I ramped up my ?RISK ON? trading book by adding a new position in eBay (EBAY), jumping on Carl Icahn?s attempt to greenmail this spectacularly well run company (come on Carl, call a spade a spade!).
My ambitious macro view is allowing me to put the pedal to the metal on the risk side. I think that the final effect of one of the cruelest winters in history will be to shift economic growth from Q1 to Q2. That gives us every excuse to ignore every piece of bad data, and only focus on the good numbers.
This paves the way for a blowout Q2 US GDP number of over 4%. That is what the stock market is telling us now by going sideways or up almost every day.
It is a real ?heads, I win, tails, you lose? market. The indexes could continue with slow, grinding sideways ?time? corrections followed by sudden, frenetic pops to the upside all the way until the summer. My current strategy cashes in on this scenario, while also providing some downside protection so you can sleep at night.
My only loss so far this year was with some S&P 500 puts that I used to hedge downside exposure for my other long positions. We can?t all be perfect.
My esteemed colleague, Mad Day Trader Jim Parker, was no small part of this success. Since the market became technically and momentum driven, I have been confirming with him before sending out every Trade Alert. Together, our success rate is 100%.
What would you expect with a combined 85 years of market experience between the two of us? Followers are laughing all the way to the bank.
Don?t forget that Jim clocked an amazing 2013 of a staggering 374%. That is just for an eight-month year!
The coming year promises to deliver a harvest of new trading opportunities. The big driver will be a global synchronized recovery that promises to drive markets into the stratosphere in 2014.
The Trade Alerts should be coming hot and heavy. Please join me on the gravy train. You will never get a better chance than this to make money for your personal account.
Global Trading Dispatch, my highly innovative and successful trade-mentoring program, earned a net return for readers of 40.17% in 2011, 14.87% in 2012, and 67.45% in 2013.
The service includes my Trade Alert Service and my daily newsletter, the Diary of a Mad Hedge Fund Trader. You also get a real-time trading portfolio, an enormous trading idea database, and live biweekly strategy webinars. Upgrade to?Mad Hedge Fund Trader PRO?and you will also receive Jim Parker?s?Mad Day Trader?service.
To subscribe, please go to my website at www.madhedgefundtrader.com, find the ?Global Trading Dispatch? box on the right, and click on the blue ?SUBSCRIBE NOW? button.
The Gunslinger on Your BehalfWhile 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.
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.
Come join me for lunch at the Mad Hedge Fund Trader?s Global Strategy Update, which I will be conducting in San Francisco on Friday, April 25, 2014. An excellent meal will be followed by a wide ranging discussion and an extended question and answer period.
I?ll be giving you my up to date view on stocks, bonds, currencies, commodities, precious metals, and real estate. And to keep you in suspense, I?ll be throwing a few surprises out there too. Tickets are available for $179.
I?ll be arriving at 11:00 and leaving late in case anyone wants to have a one on one discussion, or just sit around and chew the fat about the financial markets.
The lunch will be held at a private club in downtown San Francisco near Union Square that will be emailed with your purchase confirmation.
I look forward to meeting you, and thank you for supporting my research.
Global Market Comments
March 10, 2014
Fiat Lux
Featured Trade:
(THE MARKET LEADERSHIP CHANGE HAS BEGUN),
(XLK), (XLV), (AAPL), (XLF), (BAC), (GS), (JPM), (GM), (F)
(WATCH OUT! YOU PC IS WATCHING)
Technology Select Sector SPDR?? (XLK)
Health Care Select Sector SPDR?? (XLV)
Apple Inc. (AAPL)
Financial Select Sector SPDR?? (XLF)
Bank of America Corporation (BAC)
The Goldman Sachs Group, Inc. (GS)
JPMorgan Chase & Co. (JPM)
General Motors Company (GM)
Ford Motor Co. (F)
Owners of technology (XLK) and health care stocks (XLV) have certainly had a great year.
Except for the round of profit taking that did a quick hit and run in January, these two groups have been moving from strength to strength, punching through to multiyear highs.
That is, until last week.
Starting with the Ukraine induced plunge a week ago, these two leadership groups have started moving in a rather arthritic fashion, substantially underperforming the S&P 500 (SPY). It is all unfamiliar territory for these golden boys.
You also see this in the broader indexes, with NASDAQ starting to trail the main market for the first time in ages. This is why Mad Day Trader Jim Parker shot out Alerts to buy protective puts in the (QQQ) with a one week view.
Is the bull market over? Should you sell everything and immediately go into cash? Is it time to go hide under your bed?
I don?t think so.
All we are seeing is a long awaited leadership change in the market. Tech and health care will throttle back from their torrid pace. It doesn?t mean that these sectors are now to be given up for dead. You should wallpaper your spare bathroom with high tech share certificates (as I once did with my Japanese equity warrants after their crash). They just need a rest. This is why I skipped Apple (AAPL) in my latest round of ?RISK ON? Trade Alerts.
In the meantime, financial stocks (XLF) have moved to the fore to grab the baton after a two-month rest of their own. This is why I sent you Trade Alerts last week to buy Bank of America (BAC), Goldman Sachs (GS), and General Motors (GM).
A shift like this makes all the sense in the world. Bonds (TLT) were great performers in 2014 until a week ago, when they double topped on the charts at $109. That was the logic behind sending you my Trade Alert to sell short bonds.
When bonds fall, interest rates rise, some 20 basis points on the ten year Treasury bond in a mere five days. Who does well when rates rise? Banks, which can now charge more for their loans while the cost of funds, the deposit rates you earn, are still close to zero. That widens bank profit margins, increasing profits. The technical term for this, which you will hear about on TV, is the ?steepening of the yield curve.? Bottom line: buy bank stocks.
They could rise a lot. If Treasury yields back all the way up to 3.05% and the (TLT) revisits its $101 low, the bank shares could go on a real tear. Jim Parker?s medium term target for (BAC) is $23, up a robust 30% from here.
I already have written up a Trade Alert to pick up another bank, JP Morgan (JPM). But I will sit on it until I can catch a dip in the share price, even a piddling one.
And what about the autos? The message shouted out as loud and clear by the red-hot February nonfarm payroll print of 175,000 is that the economy is stronger than anyone thinks. This is an out there view, which I have been arguing vociferously since the summer.
The ferocious winter will no doubt cost retailers some clothing sales. No one is looking to buy a new winter coat in March. Year on year, Chicago has gone from six inches to an astounding seven feet of snow, and I?m told that everyone there is in an unspeakably foul mood, throwing empty bear cans at the TV set when the weather man appears.
This is not so for the auto industry. If buyers couldn?t find their local dealers under the snow, they will return during fairer climes with a check to take advantage of record low interest rates. At the end of the day, buying a car on dealer credit, or a lease, is a nice way to indirectly short the bond market, which we all know, is now in a new 30-year bear market.
Despite the endless blizzards that kept much of the east buried this year, the auto sales figures have held up surprisingly well. The industry is now running at a 15.7 million unit per year annualized rate, up from the 9 million unit trough seen in 2009.
It all sets up a nice upside surprise in carmaker profits after the spring thaw. You want to go out and purchase the entire sector, including General Motors (GM), Ford (F), and all of the subsidiary parts suppliers.
