1. The Mad Hedge Fund Trader “At Last!’” With John Thomas from San Francisco, CA September 10, 2014 www.madhedgefundtrader.com www.madhedgefundtrader.com

2. Drew the Short Straw

3. Trade Alert Performance Still Another New All Time High! *January Final +3.05%, *July Final +4.18% *February Final +6.41%, *August MTD 5.86% *March Final -2.52% *September +0.60% *April Final +3.32% *May Final +4.61% *June Final +4.24% 2014 YTD +30.11%, versus 3% for the Dow, an outperformance of 26% *First 185 weeks of Trading +152.6%!

4. Portfolio Review- Running Out of Positions! current capital at risk Risk On (TBT) short Treasury bond ETF10.00% Risk Off none total net position10.00%

5. Trailing 12 Month Return +57.6%

6. 44 Months Since Inception-50 BP Short of All Time High +152.5%, Averaged annualized +39.8%

7. Strategy Outlook-Risk is Still On *Global bonds probably peaked last week on ECB move *Cease fire in Ukraine is risk positive, but is this a bluff so Putin can turn off Europe’s natural gas this winter? *Now Alibaba is looming over global capital markets, triggering $20 billion in reallocations *ECB makes its big move, collapsing Euro and yen and sending dollar to yearly high *US dollar stronger than it appears

8. The Jim Parker View The Mad Day Trader-On sale for a $1,500 upgrade Technical Set Up of the week Buy *Dollar in any form, yen, Euro *European bonds Sell Short – *Stock Market trying to put in short term high *Every oil rally has failed Avoid – *Gold, precious metals

9. The Global Economy- The US is Stronger than it looks *August nonfarm payroll a disappointment at 142,000, means interest rates lower for longer, unemployment 6.2% down to 6.1% *US Q2 GDP growth at 4.2% is hotter than hot, may get revised up more! *Europe fears of Japan deflationary repeat as August inflation falls to 0.3%, French GDP market down from 1% to 0.5% *Japan fears of European deflation, Q2 GDP -7.2% annualized off of tax increase, New pension head in Japan to shift greater share of $1.3 trillion in assets out of bonds and into stocks, means more QE sooner *China August services PMI up from 54.2 to 54.4 *US July Factory Orders rise a record 10.5% one huge airliner exports

10. ISM MfG New 7 Year High Is What the Stock Market is Seeing

11. Weekly Jobless Claims- The trend is your Friend +4,000 to 302,000, new 7 year lows!

12. Bonds-US and Europe Simultaneously Top Out *Highs for the year were probably put in for for Europe and the US last week, triggered by ECB QE *One more rally left to test the theory, put in reverse head and shoulders on charts *Fed tapers quantitative easing to zero in next month, but interest rates rises not until late 2015 *New trade of the year is to Switch out of bonds *Huge rally in (JNK) disappears

13. Ten Year Treasuries (TLT) 2.50% failure here is key, proves my top for the year call

14. 30 Year Treasury Yield ($TYX)-Yield 3.23% Inverse Head and Shoulders setting Up?

15. Junk Bonds (HYG) 5.70% Yield The New Lead Contract-Wow!

16. 2X Short Treasuries (TBT) long 10% position-keeping for a quick turnaround volatility is low

17. Investment Grade Corporate Bonds (LQD) 3.49% Yield

18. Emerging Market Debt (ELD) 3.30% Yield

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

20. MLP’s (LINE) 9.40% Yield-Holding Up Against Falling Oil

22. Stocks- Best August in 14 Years *S&P 500 had gone 14 consecutive days without a 0.50% move, longest boring streak since 1995. *Reallocation from bonds and stocks into cash us underway, stocks will lead the rebound *Will see a sector shift on next 4% correction, out of Apple and technology and into banks, or out of Apple into other technology *(SPY) should hit 2,100 by yearend *Use next volatility visit to $17 as cue to buy

23. S&P 500

24. Dow Average

25. NASDAQ (QQQ)- Still an Uptrend

26. Europe Hedged Equity (HEDJ)- Weak Euro Helping Stocks

27. (VIX)- Back to the Bottom

28. Russell 2000 (IWM)-Wedge Setting Up?

29. Technology Sector SPDR (XLK), (ROM) Watch Out for an Apple Drag!

30. Industrials Sector SPDR (XLI)

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

32. Financial Select SPDR (XLF)

33. Apple (AAPL) – We got the Run to New Highs The iPhone 6 is Here! Buy the rumor, sell the news!

34. Google (GOOGL)

35. Stock of the Week-First Solar (FSLR)

36. China- The Upside breakout is Here!

37. Japan (DXJ)- Weak on poor GDP figures

38. Emerging Markets (EEM)

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

41. Foreign Currencies- Euro QE is Here at Last! *Draghi move the big move, with interest rates cuts and QE, more to come, 400-800 billions Euros to start, 5 years behind the US *Medium term target of $127 hit, next comes $125, $120, and eventually $1.00 *Scotland votes for independence 51-49, demolishing the pound *BOJ announces no new monetary actions, but yen falls anyway *Dollar hits new high for the year, sucking in more foreign money into US financial assets

42. Euro (FXE) -The Freefall is On took profits on the 9/$133-$135 put spread

43. Long Dollar Index (UUP) – Euro and Yen Collapse Great for Dollar

44. British Pound (FXB) Demoed by Scottish Poll showing 51-49 in favor of leaving the UK

45. Japanese Yen (FXY)- A Breakdown at Last! Launching off a 25 year base

46. Short Japanese Yen ETF (YCS)

47. Australian Dollar (FXA) – Flat lining on Neglect

48. Chinese Yuan (CYB) - Only the Yuan is holding up against Uncle Buck

49. Emerging Market Currencies (CEW)

51. Energy-Collapse! *Collapsing prices are forcing Russia to sell more oil to support weakening economy, accelerating the downturn *Saudi Arabia fighting back to preserve market share, boosting production *Flip from Contango to Backwardation is price supportive *Kurdish direct sales increasing after winning US court cases *Libyan exports resume, potentially adding 1.5 million barrels/day to global supply *Russia funding anti—fracking efforts in Europe to protect huge market there, export earnings *China leases world’s largest tanker to store 3.2 million barrels long term

52. Oil- Back to Multi Year$77.50-$112.50 Range

53. United States Oil Fund (USO)

54. Natural Gas (UNG)-

55. Copper-It’s All About the Dollar

56. Freeport McMoRan (FCX)-

58. Precious Metals-The Anti Dollar Trade *Simultaneous acceleration of quantitative easing in both Japan and Europe is very gold negative, Euro interest rate cut another nail in the gold coffin *Physical gold purchases from China and India falling, even though we are into the Indian wedding season *Collapsing oil, strong dollar together dragging down gold

59. Gold- Yuk!

60. Barrack Gold (ABX)-

61. Market Vectors Gold Miners ETF- (GDX)

62. Silver (SLV)- Show Me the Rally

63. Silver Miners (SIL)-

65. Agriculture * USDA crop progress report is one of the best in history *Perfect weather continues *Too many farmers still waiting for a rally to sell into *Soybean “good/average rating is 64%, now at an amazing 74%, same for wheat and corn *Hopes for an early frost? *Stand aside

66. (CORN)-New Lows! Blame This on the Dollar Too!

67. (SOYB)-Free Fall!

68. DB Commodities Index ETF (DBC)- Double Yuk!

70. Real Estate-An Autumn Revival? * Mortgage Interest rates at 18 month lows have failed to spur the market *End of taper could bring the end of the 30 year fixed rate loan. *High end house flipping is soaring *Entry level buyer MIA and may be gone for a decade (student loans, bad associations, other priorities) *

71. May S&P/Case–Shiller Home Price Index +9.3% down to +8.1% YOY

72. (ITB)- US Home Construction Dow Sub index positive data is feeding into stocks

73. Trade Sheet- keep positions small, better not to trade at all than pursue marginal trades *Stocks- buy the dips, but keep size small, with tech leading *Bonds- sell rallies across all fixed income, the top is in *Commodities-stand aside *Currencies- sell every Euro rally forever, and the yen too *Precious Metals –stand aside, buy the next bottom *Volatility-stand aside, could be a long summer *The Ags –buy new lows *Real estate- stand aside

74. To buy strategy luncheon tickets Please Go to www.madhedgefundtrader.com Next Strategy Webinar 12:00 Wednesday, September 24, 2014, Live from San Francisco, California www.madhedgefundtrader.com Good Luck and Good Trading !