Featured Trade: (CHICAGO FRIDAY, MAY 23 GLOBAL STRAGEGY LUNCHEON) (IS THE REAL ESTATE MARKET CATCHING COLD?), (ITB), (KBE), (ON EXECUTING TRADE ALERTS)
iShares US Home Construction (ITB)
SPDR S&P Bank ETF (KBE)
One of the constant challenges in living in the San Francisco Bay Area is figuring out all of the new business models that you have thrown at you on a daily basis.
I can tap on an icon on my iPhone, and two minutes later a taxi shows up (Uber). Another app downloads books on my favorite topics straight into my phone so I can listen to them while hiking (Audible). And heaven help you if you try to make a dinner reservation without first going online and checking out the restaurant (Yelp).
So I felt challenged when I received an email from a family friend the other day. A teacher in nearby Oakland, California was resorting to crowd funding to buy 140 books for her sixth grade class. She needed $965. Could I contribute towards the cause? Even $1.00 would help.
One of the big worries in funding these kinds of efforts is that the money will get wasted, misused, or stolen. By jumping in as the middleman,?Donors Choose?addresses these concerns through providing due diligence and accountability. You can even read the comments made by the individual donors, which are uplifting, to say the least.
Oakland has one of the toughest school districts in the country. It led the nation in per capita murders last year, 125 out of a population of 500,000. The city government lives constantly on the edge of bankruptcy. Budget cuts have forced major cutbacks in police and fire services.
Elmhurst Community Prep is no piece of cake for a struggling young English teacher. One student from Alliance Academy, the middle school Elmhurst shares its campus with, was murdered in the crossfire of a gang war earlier this year. His older brother was murdered within the same month (see article http://www.cnn.com/2014/02/04/us/oakland-mother-loses-sons/). Many of Elmhurst?s students were close to the student who died and were severely impacted by his loss. It is against this background that Ms. Bronte has to motivate, if not inspire her students to study and raise themselves up to better circumstances.
Bronte chose as a textbook,?When My Name Was Keoko, by Linda Sue Park, a novel set in Korea during its WWII occupation by Japan. Her goal was to show students that there are different worlds and cultures out there totally alien from their own, but still share many of the same problems that we all endure. It also illustrates how young people can rise up from adverse circumstances and prosper.
To her total amazement, the fund raising effort was a blow out success, taking in $965 in three weeks from 18 donors. Half were from family, friends, and past and present teaching colleagues. But the rest were given from total strangers from as far away as the US East Coast. Apparently, there are a lot of people out there surfing the web looking for good causes to help. Donors Choose?serves them up by the boatload.
Corporations are also getting in on the act. Apple, Google, Facebook, and Twitter have all adopted distressed communities around the country, funding hundreds of projects. To get the word out,?Donors Choose?is expanding into social media, in addition to email blasts. Over half of Ms. Bronte?s donors for the project were recruited through Facebook posts that gave information about the project.
Thus emboldened, Elmhurst Community Prep is now shooting for bigger game. It is attempting to raise $10,000 to buy 40 Google Chrome books. If successful, this would provide enough low-end Windows laptops for one roaming laptop cart decked out with its own wireless server.
To participate, you can go to another fund raising website, RALLY.org, by clicking here at?https://rally.org/ecpchromebooks?. This group raises cash for everything from avalanche relief for Sherpa families in Nepal to typhoon reconstruction in the Philippines. They?ve only raised $1,505 for the chrome books so far and have a long ways to go.
I know many of you have made a fortune following my service over the years. Here is a worthy opportunity for some of you to give some back. Peel a Benjamin off your wad and send it in. It will make you feel good! It worked for me!
If charity doesn?t work for you, then consider your own naked self-interest. These are the kids who are going to be working at companies that I have been recommending through my own Trade Alerts. A chronic complaint of these firms is the shortage of local, well trained, quality workers.
Ms. Bronte?s efforts seem to be more than adequately addressing that shortfall.
https://www.madhedgefundtrader.com/wp-content/uploads/2014/04/Graffiti-2.jpg313419Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2014-04-29 01:03:192014-04-29 01:03:19Crowd Funding Our Challenges in Education
Featured Trade: (JULY 18 BARCELONA, SPAIN STRATEGY LUNCHEON), (WATCH OUT FOR THE HEAD AND SHOULDERS), (SPY), (QQQ), (TLT), (FXE), (FXY), (GLD), (SLV), (THE SERVICE JOB IN YOUR FUTURE), (MCD)
SPDR S&P 500 (SPY)
PowerShares QQQ (QQQ)
iShares 20+ Year Treasury Bond (TLT)
CurrencyShares Euro Trust (FXE)
CurrencyShares Japanese Yen Trust (FXY)
SPDR Gold Shares (GLD)
iShares Silver Trust (SLV)
McDonald's Corp. (MCD)
Featured Trade: (LAS VEGAS WEDNESDAY, MAY 14 GLOBAL STRAGEGY LUNCHEON), (STOCKS TO BUY AT THE BOTTOM), (LNG), (GOOGL), (AAPL), (IBB), (BRKA), (AMZN), (DIS), (FB), (YHOO), (SSO), (XLV), (QQQ), (THE CHINA VIEW FROM 30,000 FEET) (FXI), (DBC), (DYY), (DBA), (PHO)
Cheniere Energy, Inc. (LNG)
Google Inc. (GOOGL)
Apple Inc. (AAPL)
iShares Nasdaq Biotechnology (IBB)
Berkshire Hathaway Inc. (BRK-A)
Amazon.com Inc. (AMZN)
The Walt Disney Company (DIS)
Facebook, Inc. (FB)
Yahoo! Inc. (YHOO)
ProShares Ultra S&P500 (SSO)
Health Care Select Sector SPDR (XLV)
PowerShares QQQ (QQQ)
iShares China Large-Cap (FXI)
PowerShares DB Commodity Index Tracking (DBC)
PowerShares DB Commodity Dble Long ETN (DYY)
PowerShares DB Agriculture (DBA)
PowerShares Water Resources (PHO)
I have long sat beside the table of McKinsey & Co., the best management consulting company in Asia, hoping to catch some crumbs of wisdom (click here for their home page). So, I jumped at the chance to have breakfast with Shanghai based Worldwide Managing Director, Dominic Barton, when he passed through San Francisco visiting clients.
These are usually sedentary affairs, but Dominic spit out fascinating statistics so fast I had to write furiously to keep up. Sadly, my bacon and eggs grew cold and congealed. Asia has accounted for 50% of world GDP for most of human history. It dipped down to only 10% over the last two centuries, but is now on the way back up. That implies that China?s GDP will triple relative to our own from current levels.
A $500 billion infrastructure oriented stimulus package enabled the Middle Kingdom to recover faster from the Great Recession than the West, and if this didn?t work, they had another $500 billion package sitting on the shelf. But with GDP of only $6.5 trillion today, don?t count on China bailing out our $16.5 trillion economy.
China is trying to free itself from an overdependence on exports by creating a domestic demand driven economy. The result will be 900 million Asians joining the global middle class who are all going to want cell phones, PC?s, and to live in big cities. Asia has a huge edge over the West with a very pro-growth demographic pyramid. China needs to spend a further $2 trillion in infrastructure spending, and a new 75-story skyscraper is going up there every three hours!
Some 1,000 years ago, the Silk Road was the world?s major trade route, and today intra-Asian trade exceeds trade with the West. The commodity boom will accelerate as China withdraws supplies from the market for its own consumption, as it has already done with the rare earths.
Climate change is going to become a contentious political issue, with per capita carbon emission at 19 tons in the US, compared to only 4.6 tons in China, but with all of the new growth coming from the latter. Protectionism, pandemics, huge food and water shortages, and rising income inequality are other threats to growth.
To me, this all adds up to buying on the next substantial dip big core longs in China (FXI), commodities (DBC) and the 2X (DYY), food (DBA), and water (PHO). A quick Egg McMuffin next door filled my other needs.
https://www.madhedgefundtrader.com/wp-content/uploads/2014/04/Great-Wall-of-China-e1428328303137.jpg400284Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2014-04-25 01:03:492014-04-25 01:03:49The China View from 30,000 Feet
Featured Trade: (ORLANDO FLORIDA SATURDAY, MAY 17 GLOBAL STRAGEGY LUNCHEON), (APPLE BLOWS OUT Q2), (AAPL), (ANOTHER NAIL IN THE NUCLEAR COFFIN), (NLR), (CCJ)
Apple Inc. (AAPL)
Market Vectors Uranium+Nuclear Enrgy ETF (NLR)
Cameco Corporation (CCJ)
Steve Jobs must be rolling over in his grave. He hated the idea of rewarding Wall Street in any way viewing the entire industry as nothing more than a collection of thieves, con men, and charlatans.
Today, we learned that Apple will carry out a 7:1 stock split in June, creating an absolute windfall for the brokerage industry. It seems that the brokers are having the last laugh. How far the Apple has fallen from the tree.
The news came out during the company?s spectacular Q2 earnings announcement covering the January-March quarter. Earnings per share rocketed from an estimated $10.18 to $11.62. Revenues leapt from a forecast $43.53 billion to $45.6 billion.
CEO Tim Cook guided revenues for the full year to the $36-$38 billion range. He also announced a massive increase in Apple?s share buy back program from $100 billion to $130 billion, the largest in corporate history.
iPhones, the firm?s core business, saw sales rocket from 38.5 million to an eye popping 43.7 million. And this is with the release of the new, big screen iPhone 6 in a few months! iPad?s fell from 19.8 million to 16.4 million due to production problems. CEO Tim Cook reaffirmed his belief that tablets will soon completely replace the personal computer.
There were no hints whatsoever about the numerous noise generating topics of Apple TV or Apple watches. Neither of these will ever account for more than a pittance of the company?s earnings, no matter how often speculation is dragged out on slow news days.
The gap up in shares in the aftermarket, some 7% to $565 a share, pretty much make it impossible to get any sort of entry points for a long side play in Apple. For week?s I had been urging followers to get in on the next dip to $500. But we never got there. At least Apple is trading with the rest of the market in 2014, like an absolute pig.
Still, Apple?s announcement augurs well for NASDAQ on Thursday and the market in general. That?s fine with me, as it presents me with a higher high from which the sell the market. Good thing I covered my short.
The New Apple Cupertino Headquarters Now Under Construction
https://www.madhedgefundtrader.com/wp-content/uploads/2014/04/Future-Apple-Headquarters.jpg324470Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2014-04-24 01:04:182014-04-24 01:04:18Apple Blows Out Q2
Featured Trade:
(JUNE 17 NEW YORK STRATEGY LUNCHEON)
(APRIL 23 GLOBAL STRATEGY WEBINAR),
(COME TO THE JUNE 13-14 INVEST LIKE A MONSTER LAS VEGAS CONFERENCE)
Please come to hear me, Mad Hedge Fund Trader John Thomas, as the keynote speaker at the Invest Like a Monster Las Vegas Conference on June 13-14.
I will be joined by many old friends from across the investment spectrum. Jon and Pete Najarian will teach you the tricks of the trade for navigating the ever complex options markets.
Fellow former combat pilot, Chuck Hughes, will go into depth on his own highly successful approach to trading the market. To listen to my in depth interview with him on Hedge Fund Radio, please click here.
Well known market commentator Guy Adami, the Prince of New Jersey, will be there to give his trading insights. So will former hedge fund manager and Yahoo Finance guru Jeff Macke.
The first day will be devoted to three educational sessions that get into the nitty gritty of trading options. The day winds up with a cocktail party with the Najarian Brothers and me.
I will kick off the Saturday session with and extended presentation on the long-term future of the financial markets, to be followed by an extensive question and answer session. I will be followed by an impressive lineup of market veterans.
The event will be held at the Bellagio Hotel on the Strip, my favorite Las Vegas haunt, best known for its spectacular water fountains out front. You may recognize it in the hit movies The Hangover and Ocean?s Eleven.
General admission costs $499 for the two full days. You can buy a VIP ticket for $699, which includes social events with the high and the mighty. It is all great value for the money, given the quality and quantity of the information you will obtain. Just click here: http://www.optionmonster.com/events/?refId=186 to buy tickets.
Trademonster?s proprietary program, called Heat Seeker ?, monitors no less than 180,000 trades a second to give an early warning of large trades that are about to hit the stock, options, and futures markets. To give you an idea of how much data this is, think of downloading the entire contents of the Library of Congress, about 20 terabytes, every 33 minutes.
The firm maintains a 10 gigabyte per second conduit that transfers data at 6,000 times the speed of a T-1 line, the fastest such pipe in the civilian world. The firm then distills this ocean of data into the top movers of the day, which is put up for free on its website, and offers much more detailed analysis through a premium subscription product.
?As with the NFL,? says Jon, ?you can?t defend against speed.?
The system catches big hedge funds, pension funds, and mutual funds shifting large positions, giving subscribers a peak at the bullish or bearish tilt of the market. It also offers accurate predictions of imminent moves in single stock and index volatility.
Jon started his career as a linebacker for the Chicago Bears, and I can personally attest that he still has a handshake that?s like a steel vice grip. Maybe it was his brute strength that enabled him to work as pit trader on the Chicago Board of Options Exchange for 22 years, where he was known by his floor call letters of ?DRJ.? He formed Mercury Trading in 1989 and then sold it to the mega hedge fund, Citadel, in 2004.
Jon developed his patented algorithms for Heat Seeker? with his brother Pete, another NFL player (Tampa Bay Buccaneers and the Minnesota Vikings), who like Jon, is a regular face in the financial media.
June is a great time to visit Sin City, as the crowds are largely gone and the sun is wonderfully baking hot. You can ride the neck-breaking roller coaster at the New York New York Hotel, catch one of eight Cirque du Soleil shows, and ride a gondola at the Venetian Hotel.
Or you can try to get a great deal on a luxury item from my buddy, Rick Harrison, at the famous Gold and Silver Pawn, of Pawn Stars fame (good luck with that!).
https://www.madhedgefundtrader.com/wp-content/uploads/2014/03/ilam-lasvegas-baby.jpg250300Mad Hedge Fund Traderhttps://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.pngMad Hedge Fund Trader2014-04-23 01:03:042014-04-23 01:03:04Come to the June 13-14 Invest Like a Monster Las Vegas Conference
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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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