1. The Mad Hedge Fund Trader “Closed for Business” San Francisco, CA October 9, 2013 www.madhedgefundtrader.com www.madhedgefundtrader.com

2. MHFT Global Strategy Luncheons Buy tickets at www.madhedgefundtrader.comwww.madhedgefundtrader.com San Francisco November 1

3. TradeMonster San Francisco Conference October 25-26 San Francisco Marriot Marquis Hotel Go to www.madhedgefundtrader.com and register by clicking the InvestMonster box on the rightwww.madhedgefundtrader.com

4. Trade Alert Performance Running Away From the Pack *2013 YTD +41.73%, compared to 12% for the Dow, beating it by 30% *September +6.26% *First 130 weeks of Trading +96.8% *Versus +20% for the Dow Average A 77% outperformance of the index 143 out of 202 closed trades profitable 80% Success Rate in 2013 70.8% success rate on closed trades

5. Portfolio Review- Waiting to Buy the Next Dip minimize risk while Washington burns Expiration P&L +43.69% YTD current capital at risk Risk On (SPY) 10/$158-$163 call spread10.00% Risk Off (TLT) 10/$100-$103 call spread-10.00% (FXA) 10/$87-$90 call spread-10.00% total net position-10.00%

6. Performance Year to Date +41.43%

7. Performance Since Inception +34.6% Average Annualized Return

8. Strategy Outlook-Buy the Dips *It’s all about Washington, no other issue matters *Market risk taking has gone to zero, huge spike in 30 day Treasury yields *Cessation of all government data puts traders in the blind *Major down leg for dollar in the cards, except against the yen *Market ignores Yellen appointment, but will eventually add 10% to stocks *Should get resolution around October 17

9. The Jim Parker View The Mad Day Trader-On sale for a $1,000 upgrade Summer market still prevails Technical Set Up of the week *Buy No trade, traders on strike, wait it out, do your homework Emerging markets (VNM), (RSX), (PIN) don’t chase (VIX) *Sell Short a yen sale is near

10. The Economy-Beats Me! Only the foreign data is still coming through, and it is all positive *Government shutdown starves market of US economic data, when data resumes, it will be plagued with aberrations for the rest of 2013 *Government shutdown to roll 0.5% of GDP growth from Q4 to Q1, making Q1 a red hot 3.5% one *BOJ Maintains supper accommodative 70 trillion money supply growth target *Japanese CPI hits 5 year high at 0.8%YOY *Japan to raise sales tax from 5% to 8% in April, offset with additional stimulus package

11. Weekly Jobless Claims 1,000 rise to 307,000, 5 year low The Last Accurate Number of 2013

12. ISM Manufacturing Index Surges

13. Bonds-The Bull Move is Done *Debt ceiling crisis drives Treasury bond prices up and yields down, from 3.0% to 2.60% *Most up downside moves in yields is done, possible make it to 2.45% of shutdown continues another week, but the next big move is down *Resolution could take us quickly back to 3% *The securities facing default have had the biggest price gains over the past month *The shutdown puts taper off well into 2014, is very bond positive, $85 billion in bond buying continues

14. Ten Year Treasuries (TLT Yields) long the (TLT) 10/$100-103 bull call spread 7 trading days to expiration

15. 10 Year Treasury Yield ($TNX)

16. 2X Short Treasuries (TBT)-Breaking Down

17. Emerging Market Debt (ELD) 5.75% Yield

18. Municipal Bonds (MUB)-2.98% yield, Mix of AAA, AA, and A rated bonds

19. (JNK)- 6.46% Yield

20. MLP’s (LINE) 10.9% Yield

21. Stocks-Awaiting the Starting Gun *The debt ceiling resolution deadline is October 17, parties will run it up to last second of the last day to maneuver for advantage *Debt ceiling resolution will quickly send stocks to new all time highs, the performance chase will be on *Money managers still have cash pouring into equities, must invest by year end *Consumer cyclicals, technology, health care, and industrials will lead *Individual Margin debt at all time highs, is peaking a indicator

22. (SPX)-The 30,000 view

23. S&P 500 (SPX)- Testing trend support targeting 1,620 on downside

24. NASDAQ (QQQ)

25. (VIX)-A Pulse Returns

26. Russell 2000 (IWM)- Led the Upturn

27. Financials SPDR (XLF)- Leading the downturn

28. Apple (AAPL)- Throw Back still in Play, Icahn, buyback, Jeffries upgrade, technical's, already trading off iPhone 6, 11 months away

29. Technology Sector SPDR (XLK), (ROM)

30. Industrials Sector SPDR (XLI), (UXI)

31. Cyclicals Sector SPDR (XLY), (UCC)

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

33. Cyclicals Sector SPDR (XLY)

34. Tesla (TSLA)-Don’t Touch here Evening a burning car can’t send the stock down

35. Shanghai- Double Bottom in place

36. (DXJ)- Early and Ouch! long the 11/$43-$46 bull call spread

37. Emerging Markets- Bottom fishing

38. Dollar-Beaten Up *Debt ceiling crisis very dollar negative, brought dramatic fall in US interest rates on flight to safety trade *Loss of interest rate advantage *End of shutdown will bring massive dollar rally *Use this dip to sell yen, buy Ausie *Stand aside on euro until it hits $1.40

39. Long Dollar Basket (UUP)-

40. Euro (FXE) -No Trade

41. Australian Dollar (FXA) - Long the 10/$87-$90 call spread, 7 days to expiration

42. Japanese Yen (FXY) -The range holds, but is biggest position in the market

43. (YCS)-For Non Options Players 200% Short Yen ETF-head and shoulders top risk

44. Emerging Market Currencies (CEW)

45. Energy- Gone Quiet *Middle East has gone quiet *Shutdown kills the demand argument *Supply keeps coming *Oil hit my first downside target at $102, *The next target is $92

46. Crude-

47. United States Oil Fund (USO)

48. Natural Gas-First heavy snow fall helps

49. Copper-Coiling for upside break

50. Freeport McMoRan (FCX)- looking to get back in

51. iPath Dow Jones-UBS Copper Sub Index ETN (JJC)

52. Precious Metals-Short Term,Is the Bottom in? *Shutdown delivers the best case scenario for precious metals *Government defaults, but gold falls *Failure to respond shows we’re still in a bear market, stocks in a bull market *Shutdown hammers the miners *Looking for a short term bounce to $1,420 on a medium and long term bear market

53. Gold-

54. Gold (GLD)

55. Barrack Gold (ABX)-

56. Market Vectors Gold Miners ETF- (GDX)

57. Silver (SLV)- Silver says we’re still going lower

58. Agriculture-No Trade Until 2014 *Worst hit sector by government data freeze, farmers flying blind *Early heavy Midwest snowfall should help prices, delays corn harvest *Russia cuts back winter wheat plantings 20% to 13 million tonnes *China returns to market as buyer *Bottom line: no trade in 2013

59. (CORN)-still trying to bottom

60. Wheat (WEAT)

61. DB Commodities Index ETF (DBC) Dead Cat Bounce

62. Real Estate-Target Number 1 *End of government loan processes stops 95% of all transactions *August pending home sales -1.6% *Will be worst hit sector if Washington stalemate continues *Housing stocks get slaughtered

63. June S&P/Case–Shiller Home Price Index

64. (ITB)- US Home Construction Dow Sub index

65. Trade Sheet-No Change “RISK ON” Good Into 2014 *Stocks- buy the dips, running to a new yearend high *Bonds- trade the 2.50%-3% range *Commodities-start scaling in on dips *Currencies- sell yen on any rallies, buy Ausie dips *Precious Metals –buy bottom of range only *Volatility-stand aside, is peaking here *The Ags –stay away until next year, no trade *Real estate- no trade

66. To buy strategy luncheon tickets Please Go to www.madhedgefundtrader.com Next Strategy Webinar 12:00 EST Wednesday, October 23, 2013 Live from San Francisco www.madhedgefundtrader.com Good Luck and Good Trading!