Just a quick note to tell you that yesterday, the Trade Alert Service of the Mad Hedge Fund Trader posted its biggest one-day gain ever. From the Friday to the Monday close my trade-mentoring program picked up some 447 basis points. The three day pickup for the service is an eye popping 12.23%. That takes readers’ year to date profit to a mind blowing 39.52%. David Tepper, eat your heart out.
The dominant gainer was my short in the Japanese yen (FXY), (YCS), which I doubled up once again on Friday. Today, the beleaguered currency touched a new four year low at ¥99.36 to the dollar, and it looks like the fat lady hasn’t yet sung.
I believe that last week’s action by the Bank of Japan was so dramatic, and so desperate, and we have seen only the opening phase of the deprecation of this currency. It sets the stage for the yen to fall, not from ¥96 to ¥100, but from ¥100 to ¥125.
The modest gains seen in stocks today boosted my long position in the S&P 500 further towards its maximum point of profitability. It also enabled my losses in long positions in Bank of America (BAC) and Apple (AAPL), to shrink nearly to zero. In the meantime, my short volatility position on the S&P 500 remains profitable, as the gains this month have been so glacial. Finally, a new short in the Treasury bond market through the (TBT) proved immediately profitable.
All told, I am now fully invested, with long positions exactly counterbalancing short ones. If the April options expiration in eight trading days goes well, our year-to-date gain should leap to 46.7%.
Global Trading Dispatch, my highly innovative and successful trade-mentoring program, earned a net return for readers of 40.17% in 2011 and 14.87% in 2012. The service includes my Trade Alert Service, daily newsletter, real-time trading portfolio, an enormous trading idea database, and live biweekly strategy webinars. To subscribe, please go to my website at www.madhedgefundtrader.com, find the “Global Trading Dispatch” box on the right, and click on the lime green “SUBSCRIBE NOW” button.