Mad Hedge Fund Trader: Ebola Issue and Market Analysis

1. The Mad Hedge Fund Trader“Special Ebola Issue” With John Thomasfrom San Francisco, CA October 8, 2014www.madhedgefundtrader.com

3. Trade Alert PerformanceStill Another New All Time High! *January Final +3.05%, *July Final +4.18% *February Final +6.41%, *August Final 5.86% *March Final-2.52% *September Final 5.01% *April Final +3.32% *October MTD 5.18% *May Final +4.61% *June Final +4.24% 2014 YTD +39.7%, versus 1%for the Dow,an outperformance of 39%, 10% since last webinar! *First 187 weeks of Trading +162%!

4. Paid Subscriber Trailing 12 Month Return +65.4%

5. 46 Months Since Inception Averaged annualized +41.9%

6. Portfolio Review-Pedal to the Metal!Making a Fortune on a Neutral BookPositioned for a big sideways move

7. Strategy Outlook-Risk Back On *Blockbuster September nonfarm payroll of 248,000, huge back month revisions, headline unemployment 6.1% down to 5.9%, an 8 year low *Every asset class in the world is anticipating higher interest rates, except the bond market*Commodities, oil, gold, silver, base metals, food, and foreign currencies in free fall*Dollar hits multiyear high against everything*Is this the Midterm election correction,but we just can’t see it? Buy the post electioncrash if the Democrats hold the senate(watch Kansas).

9. The Jim Parker ViewThe Mad Day Trader-On sale for a $1,500 upgrade Technical Set Up of the week-Watch European financials for the lead Buy *Gold at bottom of range for buy*Bonds only have 2-3 points to go Sell Short *If (IWM) doesn’t hold here drops another 10% Avoid * Everything, could take 2 more weeks for marketsto Sort themselves out

10. The Global Economy- The US is an Island of Strength *Blockbuster September nonfarm payroll of 248,000, huge back month revisions, headline unemployment 6.1% down to 5.9%, an 8 year low*US August JOLTS report show most new job offerings since 2001, labor tightening approaching *US August Factory orders -10.8%, biggest drop in 10 years*Plunging gasoline prices under $3 amount to a huge tax cut for all*European and Japanese economies grinding to a halt,German August industrial production down 4% MOM*Will force Germany to be more open tomonetary easing*IMF cuts global growth forecast, but boostsUS from 3.3% in 2014 to 3.8% in 2015

11. Weekly Jobless Claims - The trend is your Friend-8,000 to 287,000, new 8 year lows!

12. Bonds- *Global bond rates still at rock bottom levels, last time US unemployment was at 5.9%, 10 year Treasuries were at 4%, now at 2.40%*This is the final month of the Fed’s tapers quantitative easing, but interest rates rises not until late 2015 0r 2016*ECB QE executed in private bond market, not public, pushing prices artificially high*Switch out of bonds into stocks about to become major factor*Treasuries make back almost the entire September correct in two days, hit 2.39% for the ten year, another short selling window is opening*Watch junk bonds (JNK) as the new canary in the coal mine for global risk taking*Was the September bond selloff all aboutPIMCO’s Bill Gross?

13. Ten Year Treasuries (TLT) 2.34%

14. 30 Year Treasury Yield ($TYX)-Yield 3.05%

15. Junk Bonds (HYG) 5.81% YieldThe New Lead Contract

16. 2X Short Treasuries (TBT)long 10% position-Flirting with being early

17. Investment Grade Corporate Bonds (LQD)3.54% Yield

18. Emerging Market Debt (ELD) 3.56% Yield

19. Municipal Bonds (MUB)-2.88% yield, Mix of AAA, AA, and A rated bonds

20. MLP’s (LINE) 10.10% Yield-Oil drag boosting yield

21. Stocks-The Bull That Can’t Be Killed! *Solid bounce off $1,925 and September nonfarm rally brings the bulls back in*Alibaba correction almost done, fears of strong dollar hurting US earnings is being overstated, most big companies have hedged out risks *Watch for the sector rotation, out of energy and technology and into financials and consumer discretionary*Yearend rally coming, but not yet, expect a sideways wedge for 2-4 weeks*(SPY) could add 10% by yearend from the August low, regardless of geopolitics*Volatility peaking here

22. S&P 500 (SPY) Targeting 200 day moving averageLong 11/$185-$190 vertical bull call spreadShort 2X 10/$202-$205 vertical bear put spread

23. Dow Average-Targeting 200 day moving average

24. NASDAQ (QQQ)-Still an Uptrend

25. Europe Hedged Equity (HEDJ)-200 day broken!

26. (VIX)-It’s Alive!

27. Russell 2000 (IWM)-Channeling Too

28. Technology Sector SPDR (XLK), (ROM)Rolling Over

29. Industrials Sector SPDR (XLI)

30. Health Care Sector SPDR (XLV), (RXL)

31. Financial Select SPDR (XLF)Hit by Strong Bond Market

32. Consumer Discretionary SPDR (XLY)

33. Apple (AAPL) –iPhone 6 Indigestion

34. Tesla (TSLA) –New Model Launch TomorrowPanasonic to invest tens of billions of dollars in giga factorieslong the 11/$200-$220 vertical bull call spread

35. GT Advanced Technologies (GTAT)No Sapphire for iPhone 6 Means Chapter 11!

36. Google (GOOGL)

37. China-The Bull market is Here

38. Japan (DXJ)-Weak on poor GDP figuresYen Dead Cat Bounce

39. Emerging Markets (EEM)-200 day here too

40. India (EPI) – Still Grinding Up on EEM Strength

41. Foreign Currencies-King Dollar Reigns Supreme! *Prospect of rising US rates and falling ones around the world sends the greenback to multiyear highs*Failure of ECB to announce new moves pushes Euro into free fall.*VAT tax rise hangover still hurting Japanese economy, yen break Y110, targeting Y115*Commodity collapse killing the Aussie*Virtually all currencies now extremely over expended, risk of a snap back rally risingoff the back of Treasury complaints aboutcompetitive devaluations

43. Euro (FXE)-The Freefall is OnLong the 11/$127-$129 vertical bear put spread

44. Long Dollar Index (UUP)Four Year High, But just the beginning of the bull market

45. British Pound (FXB)

46. Japanese Yen (FXY)-

47. Short Japanese Yen ETF (YCS)

48. Australian Dollar (FXA) –

49. Chinese Yuan (CYB)-The bull market has resumed

50. Emerging Market Currencies (CEW)