1. The Mad Hedge Fund Trader “Short Squeeze!” With John Thomas from San Francisco, October 7, 2015 www.madhedgefundtrader.com www.madhedgefundtrader.com

2. Trade Alert Performance New All Time High! *January +0.53% Final *July +6.42% Final *February +7.73% Final *August +1.27% Final *March +3.00% Final *September 11.99% Final *April +6.62% Final *October MTD -5.19% *May +5.15% Final *June +3.68% Final *2015 Year to Date +39.03% compared to -5.6% for the Dow Average *Trailing 1 year return +29.64%, +191.84% since inception, *Average annualized return of 39.69%

3. Portfolio Review Staying very small and very nimble Expiration P&L 41.59% Mad Hedge Fund Trader Model Trading Book Asset Class Breakdown Risk Adjusted Basis current capital at risk Risk On World is Getting Better (TLT) 11/$128-$133 put spread10.00% (TSLA) 11/$200-$220 call spread10.00% Risk Off World is Getting Worse none total net position20.00%

4. Paid Subscriber Trailing 12 Month Audited Return +29.64%

5. 58 Months Since Inception Daily Audited Performance Averaged annualized return +39.69%

6. 10 Stocks to Buy at the Bottom Lennar Homes (LEN) $53.45 Home Depot (HD) $116.16 Walt Disney (DIS) $98.84 General Motors (GM) $29.60 Tesla (TSLA) $230.77 Apple (AAPL) $105.76 Solar City (SCTY) $40.99 Gilead Sciences (GILD) $105.33 Wisdom Tree Japan Hedged Equity (DXJ) $52.01 Wisdom Tree Europe Hedged Equity (HEDJ) $56.95

7. Strategy Outlook-Setting Up the “BUY” *Rumors flying that the Fed may raise rates in October *The bottom in stocks may be in, but expect a retest, and another flash crash, thanks to structurally poor liquidity *Oil trapped in wide $44-$48 range, entering seasonal weakness *Weak September nonfarm payroll at 142,000 creates a great bond market spike to sell into *Dollar flat lines after Fed decision-no trade *Gold stalls again at the bottom *Ags clearly discounting major damage from an el nino winter

8. The Bill Davis View The Mad Day Trader Upgrade for $1,500 a year more short term Trade Alerts, morning opening commentary, and biweekly webinars Picks of the Week Buys: GoPro, Inc (GPRO) $31.50 Target to $44 (Wait for close above $31.50) Amazon.com (AMZN) $520 Target to $580 Starbucks Corp (SBUX) $57 Target to $62 Facebook, Inc. (FB) $91 Target to $98 Sells: TripAdvisor, INC. (TRIP) $69 Target to $56 Workday, Inc. (WDAY) $75 Target to $66 Baidu, Inc. (BIDU) $150 Target to $120 Agrium (AGU) $97 Target to $87 Whirlpool Corp (WHR) $162 Target to $150 Martin Marietta (MLM) $165 Target to $145

9. The Global Economy-Conflicted *US Q2 GDP revised up from a hot 3.7% to a hotter 3.9% *But September nonfarm payroll says otherwise at 142,000, 5.1% unemployment *Japan falls back into deflation, with -0.1% YOY consumer prices, Abe promises to boost GDP by 22% *China closed for the week, so data goes cold *Next to come is a “RISK ON” global synchronized growth

10. Weekly Jobless Claims – Another Run at the Lows +10,000 to 277,000 headed for Full Unemployment at 5%-Global Recovery a Driver

11. Bonds-Back on the “SELL” Side *Huge spike off weak September nonfarm payroll is whacked immediately *A perfect triple bottom sets up at 1.85%-1.90% for Ten year Treasury bonds *High prices belie poor liquidity *New lows for Junk bonds follow the equity short squeeze back up *Piling back into the (TBT)

12. Ten Year Treasuries (TLT) 2.04% The down trend is in place! Sell Rallies!

13. Ten Year Treasury Yield ($TNX) 2.16% 1.90% Support Holds

14. Junk Bonds (HYG) 6.83% Yield Big Hedge Fund short

15. 2X Short Treasuries (TBT)-Second Half Big Trade? Buy at the Dip, $41 will hold

16. Emerging Market Debt (ELD) 5.88% Yield Poland, Mexico, Brazil, Columbia, South Korea Big hedge funds lining up to sell-Identical chart to junk bonds

17. Municipal Bonds (MUB)-1.73% yield Mix of AAA, AA, and A rated bonds-flight to safety

18. Stocks-The October Crash Happened in September *Two once in four year events in two months: the August 24 flash crash and the October 2 500 point intraday reversal that added 900 points in 3 days *Watch the stocks that are flat lining now, they will lead in next rally, (HD), (DIS), (AAPL), (GE), (SCTY), (TSLA) *November is the best corporate stock buy back of the year, with 13% occurring, Q4 the best buyback quarter at 30%, is the basis for Q4 rallies *15 X 2015 earnings, and 13.5 X 2016 earnings will limit any downside to SPX 1,796 *Earnings improvement will drive a run in stocks to new highs by yearend *Work on your shopping lists, a chance to get in at a multiyear low is approaching *A lot of great quality stocks selling at big discounts thanks to the “ATM Effect”

19. S&P 500-200 Day MA in Play at $204.40 Setting up the Range STOPPED OUT of the 10/$199-$202 vertical bear put spread-7 days to expiration STOPPED OUT of the 10/$198-$201 vertical bear put spread-7 days to expiration

20. Dow Average- Down -4.6% on the year!

21. NASDAQ (QQQ)-

22. Solar City (SCTY)-Still a Slave to Oil

23. Europe Hedged Equity (HEDJ)-

24. Volkswagen (VLKAY)-Stock of the Week attempting a bounce at -41% on clean diesel scandal

25. (VIX)-Bleeding Off From Four Year High!

26. (XIV)- Velocity Shares Daily Inverse VIX Short Term ETN 4 Profitable Round Trips!

27. Russell 2000 (IWM)-The Weak Link most affected by rising rates-Great leading indicator

28. Palo Alto Networks (PANW)- New Uptrend

29. Technology Sector SPDR (XLK), (ROM) (AAPL), (MSFT), (VZ), (T), (FB), (IBM)

30. Industrials Sector SPDR (XLI)-Dow Mainstay (GE), (MMM), (UNP), (UTX), (BA), (HON)

31. Transports Sector SPDR (XTN)-Another Dow Mainstay (ALGT), (ALK), (JBLU), (LUV), (CHRW), (DAL),

32. Health Care Sector SPDR (XLV), (RXL) (JNJ), (PFE), (MRK), (GILD), (ACT), (AMGN)

33. Financial Select SPDR (XLF)-Party Postponed (BLK/B), (WFC), (JPM), (BAC), (C), (GS)

34. Regional Bank Basket (KRE)-The Fix Disappoints (MTG), (RDN), (SIVB), (CFG), (CFR), (BXS)

35. Consumer Discretionary SPDR (XLY) (DIS), (AMZN), (HD), (CMCSA), (MCD), (SBUX)

36. Apple (AAPL) – waiting for the next real catalyst-the iPhone 7

37. Tesla (TSLA) –The Model X is Here! Long the 11/$200-$220 vertical bull call spread, but 2 small broker downgrades since the Trade Alert went out

38. Biotech iShares (IBB)-The Hillary Hit Continues Government open bidding on drug buys and imports approaching extreme value for high growth stocks

39. Shanghai ($SSEC)-Shanghai closed for the week removes headline risk for US

40. Japan (DXJ)-Hedged Japan Equity

41. Sony (SNE)-Buy Territory

42. Emerging Markets (EFA)-Bounce on Commodities Rally

43. India (EPI)-Buy it Here

44. Foreign Currencies-Gone to Sleep *Weak September nonfarm payroll triggers dollar profit taking, implies lower dollar interest rate for longer *Currency front has gone quiet with boring sideways movement-no trade *Everyone is waiting to pile back into dollar on the next interest rate hike rumor *Yen moves into another wedge pattern awaiting a downside breakout *Big short cover in Aussie (FXA) and Loonie (FXC) on oil and commodity bounce

45. Euro ($XEU), (FXE), (EUO)-Playing Both Asides

46. Long Dollar Index (UUP)-

47. Canadian Dollar (FXC)-Commodity Bounce

48. Japanese Yen (FXY)-

49. Short Japanese Yen ETF (YCS)

50. Australian Dollar (FXA) –Bounce

51. Chinese Yuan- (CYB)-4% Devaluation

52. Emerging Market Currencies (CEW) another hedge fund short target and flash crash

53. Energy-Volatility is King *The oil markets are now moving from seasonal strength to weakness, should bring the final bottom, speculators now play from the long side *Saudi Arabia cuts prices for biggest customers, continuing market share war *Caterpillar lays off 10,000, anticipating another grim year in 2016 *Oil producer hedging to fall from 28% to 11% from 2015 H2 to 2016 H1, putting many small companies at risk *Charts showing a pennant upside breakout, sucking in short term technical traders *Fundamentals still getting worse, no matter what the charts say *Avoid-too difficult to trade for now

54. Oil-May Be a Q4 Story

55. United States Oil Fund (USO )

56. Energy Select Sector SPDR (XLE) (XOM), (CVX), (SLB), (KMI), (EOG), (COP) stocks lead oil turnaround by 6 months

57. MLP’s (LINE)-Dividend Suspended! Shares fall to option value

58. Exxon (XOM)-A Perfect Storm Oil Crashes, then the Stock Market Crashes

59. Occidental Petroleum (OXY)-

60. Conoco Phillips (COP)-

61. Natural Gas (UNG)-new Lows!

62. Copper-Commodity Collapse

63. Freeport McMoRan (FCX) - Carl Icahn in Play

64. Precious Metals-Short Covering Rally *Gold Trying to bottom on the charts with a sideways pennant *Stock market short squeeze bring huge outperformance by mining stocks *VW Diesel crisis weights on platinum (PPLT) to the benefit of palladium (PALL) because diesel uses (PPLT) while gasoline engines depend on (PALL) *UAE doubles gold holding in July from 2.53 to 4.93 metric tonnes *Stay away, better fish to fly elsewhere

65. Gold (GLD)- Finally, A Flight to Safety

66. Market Vectors Gold Miners ETF- (GDX)

67. Silver (SLV)-

68. Silver Miners (SIL)

69. Platinum (PPLT)-The Volkswagen Effect

70. Palladium (PALL)-The Non Diesel Play

71. Agriculture-Looking for El Nino *Good weather setting up perfect harvest conditions in the Midwest *Specs starting to play ags from the long side, looking towards tighter conditions in 2016 *Chinese president’s visit brings traditional ag contract purchases *Prices anticipating major damage from an el nino winter *Broader oil and commodity bounce is helping drag up the ags *Play from the long side here, but stay close to the exit

72. (CORN)

73. (WEAT)

74. Ag Commodities ETF (DBA)

75. Real Estate-Shortage of Supply *August new home sales +5.7%, 22% higher YOY on signed contracts basis to annualized rate of 552,000, highest since 2008 *Home price increases accelerating, up 6.9% YOY nationally in August *Pending home sales down 1.4% in August, up +6.1% YOY, Still half of 2000’s peak rate *Inventories at a miniscule 4.7 month supply *KBI beats on earnings, but high land acquisition prices are starting to eat into profits. *Homebuilders to lead stock for rest of 2015 *Predicted rush to buy homes to beat the fed interest rate hike is unfolding

76. June S&P/Case–Shiller Home Price Index +4.7% YOY, Denver, San Francisco, Dallas

77. Where the Action Is

78. US Home Construction Index (ITB) (DHI), (LEN), (PHM), (TOL), (NVR)

79. Trade Sheet So What Do We Do About All This? *Stocks- buy the big dips in best names only *Bonds-the top is in, sell rallies, buy (TBT) *Commodities-stand aside, buy the next oil down leg *Currencies- Sell short the Yen and Euro on rallies *Precious Metals –stand aside, wait for new low *Volatility-sell short spikes through (XIV) *The Ags –wait for new lows *Real estate-buy the homebuilders LT

80. To buy strategy luncheon tickets Please go to: www.madhedgefundtrader.com Next Strategy Webinar 12:00 EST Wednesday, October 21, 2015 Incline Village, Nevada USA! www.madhedgefundtrader.com Good Luck and Good Trading !