1 November 2016: Sit still

windzakThere is hardly any direction in the markets these days. Too much insecurity is surrounding the US Presidential elections and a possible rate hike decision by the Federal Reserve. And so, the majority of investors just sit still and wait. And although Hillary Clinton has a big lead in the polls, the Brexit outcome has demonstrated that the impossible can become possible. The group of investors who are willing to take a risk, is rather small. It will probably turn out to be pretty harmless in the end. But until next Tuesday, do not expect anything spectacular.

white-chapel-logo-smallInvestors were still feeling insecure about the US Presidential elections yesterday. For yet another day, volatility was on the rise: the VIX added almost 6% and our UVXY rose more than 4%. Return for the year reached 277% and return for the quarter is approaching 25%.
White Chapel did not give a signal at the end of Monday’s session, but is getting closer and closer to a trading signal.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$37,733

+277.33%

+277.33%

+23.2%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 400%.

RS_v05-smallIt is said that accidents are always waiting to happen. René found out the hard way last Saturday morning. While performing a routine task on his computer (an iMac running Linux) the machine went haywire. Yet the task was simple enough: remove some old, obsolete kernels and update the boot loader. But if you do something a hundred times without any problem whatsoever, don’t be surprised when the one hundred first time Murphy shows up.
And so he did, last Saturday morning. The iMac didn’t quite like the updated boot loader, and had one cryptic message for René, which came down to something like: “Now you do it yourself. I’m out.
grub-errorWhen René tried to fix the problem by using some known tricks that normally would work, this time they didn’t. On the contrary: they moved him further away from the solution. Drinking more coffee didn’t help him either. Late that evening, the machine still hadn’t given in. And his temper had suffered considerably.
In situations like these it’s best to know when to stop. So, after receiving a voice call from Tim about White Chapel, he felt much better and decided to take a good night’s sleep.
Needless to say, he got his iMac up and running again early on Sunday morning. And thanks to a good backup strategy he didn’t lose even one byte of data. René guessed he just woke up before Murphy did, that day.