26 September 2016: Oil is spoiling

With the news about the Fed out of sight, investors turn their focus on oil. 

oil-pumpNow that there will be no Fed news for quite some time, investors have to look for other clues. And the focus last Friday was on… oil. As long as there is something else than the state of the economy to look at, why shouldn’t you take that into consideration?  Unfortunately, it was not a pleasant sight. Oil related stocks got hammered and brought the market down as a whole. It was getting more and more unlikely that major oil producers would reach an agreement to freeze production and so oil futures suffered their largest one-day loss in more than two months.
It is a nice prelude to the upcoming quarter, in which news that is foreign to the core of the economy will trump reports on earnings, GDP growth and mergers & acquisitions…

white-chapel-logo-smallSo, oil spoiled the three-day party of investors. Again. It was not the first time this year (and probably not the last) that uncertainty about the oil prices brought the markets down. All major US indices lost more than 0.5%. Volatility went up: the VIX added more than 2% and our UVXY ETFs gained almost 2%. White Chapel‘s return for the year is now back at above 200%. No signal from our model at the end of Friday’s trading session. We stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$30,352

+203.52%

+203.52%

-10.6%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 367%.

RS_v05-smallAs far as René can remember, he never visited a cruise ship. So last weekend, during a visit to Rotterdam, he took the opportunity to step aboard of the SS Rotterdam (Steamship Rotterdam). “La Grande Dame“, as she is also called, was in service for over 40 years for the Holland America Line. Retired in 2000 and protected and preserved since 2001 by the Steamship Rotterdam Foundation, the ship is now publicly accessible. According to René, the SS Rotterdam is a must-see for anyone interested in craftsmanship, design, history, big boats, a drink, a bite, a romantic marriage location or any combination thereof. With her capacity of 1,456 passengers, length of 228.0 m (748 ft), height of 49.8 m (163.5 ft) and 38,645 gross tons of weight, and despite her respectable age, she hasn’t stopped to impress visitors as well as passers-by.ss-rotterdam