2 August 2016: August’s losses

August began mixed. How will the rest of the month be?

oogst-van-goghOf course, making some general statement about the nature of an upcoming period on the basis of history is always a bit tricky. But if we were to characterize the month of August, we would say that it is notorious for its losses. Historically, August, that is – ironically enough – also known as the harvesting month, averages a loss of 1.3%.
But, hey, results from the past are no guarantee, bla bla. Yes, we know, and it is only after the close of the markets at 31 August, that we can tell with certainty whether or not August has lived up to its reputation.
But circumstances appear to be favorable for this month to show its true nature: the uncertainty surrounding the solidity of European banks and the impact of the Brexit, earnings of companies around the globe that have been not that impressive lately, Hillary and Donald, China.
Well, These Dutch Guys do not make judgments on the basis of speculation. They just sit and wait to see what the signals of their model White Chapel are.
white-chapel-logo-small
Major US indices were mixed yesterday and the VIX rose substantially. Nevertheless, the inverse securities that make up our portfolio (XIV ETN’s), added more than 1.5%. We are wondering how long this discrepancy will last…? Return for the year is now 365%. Our average Annual Return is well above 1300%.

Trading signal: as a result of a change of momentum, White Chapel gave a trading signal at the end of Monday’s session: a “V” (volatile) signal. As a result of that, we sold our inverse positions (XIV ETNs @ $33.83) this morning and bought volatile ETFs (UVXY ETFs @ $24.98).

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$46,536

+365.36%

+365.36%

+35.3%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 1348%.

campfireTim is enjoying his holiday. He is doing so by staying in a small cabin in the woods with his family: enjoying a simple but delicious meal, playing a game of chess, reading a book from the digital pile that has been collecting dust during the past twelve months, drinking a good glass of wine, listening to the sound of silence (and the occasional bird)…
Although the cabin is equipped with a flat screen television, it has not been switched on so far. The cabin has a far more interesting asset: a fireplace. Collecting wood is as simple as opening the patio doors to the terrace, taking a few steps outside and picking up the branches and other parts of wood that have been entrusted to the ground by the many pine trees in the wood.
It only takes half a page of the local newspaper to set fire to the pile of leaves, twigs, needles, cones and branches in the fireplace. The heat starts flowing into the cabin and the smell of resin fills the air.
Watching the dancing flames in the fireplace, which are accompanied by a soundtrack of cracking wood and the rush of sparks through the chimney, is so much better than whatever television show that could have been presented on the flatscreen television.

2 thoughts on “2 August 2016: August’s losses

  1. Great looking site. Presume you did a great deal of your own coding.

    1. Thank you. The website is just plain WordPress (plus theme). No web design coding whatsoever on our part.

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