22 November 2016: Relief

reliefThe current rally in the stock markets is all about relief. Relief from the (imagined?) fears surrounding the Brexit, the election of Donald Trump, everlasting low oil prices, etc. Investors are in a good mood. History has taught us that they might carry this good feeling into the holiday season. Santa Claus is handing out presents early this year… Hopefully, the Fed is not going to spoil the party. Well, in the (unlikely) case that the Fed will not raise interest rates this December, another stage might be added to the current relief rally.

white-chapel-logo-smallMajor U.S. stock indexes moved to record highs on Monday, driven by big gains in energy companies as the price of crude oil rose sharply. The Dow added almost 0.5%, the S&P 500 0.75% and the NASDAQ even 0.89%. Volatility eased, with the VIX losing more than 3% and our XIV ETNs adding more than 4.5%. Our return for the year jumped to 321% and return for the quarter is approaching 40%. The average Annual Return is now above 400%.
White Chapel did not give a trading signal and is not considering a switch to UVXY ETFs at the moment.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$42,112

+321.12%

+321.12%

+37.5%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 410%.

sint-a58Last Sunday, the Netherlands were hit by the first autumn storm of the year. Luckily, there were no human casualties who fell victim to the heavy winds that blew across the flat country. A number of trees were less fortunate and got uprooted. Police officers and firemen had a busy afternoon removing those trees from blocked roads and diverting the traffic. On his way to a Sinterklaas party, Tim came across an unfamiliar scene: a Sinterklaas and a number of black petes were standing on the hard shoulder of the main motorway in the region. Not the most likely location for the arrival of Sinterklaas… Tim learned later that a car, which carried Sinterklaas and some black petes, had been hit by a traffic sign on the loose. Sinterklaas was frightened by the incident, but after a short medical check-up, he could continue his journey to a group of children whose hearts were beating with anticipation.