9 December 2016: Super Mario still on the roll

super-mario-rollSuper Mario is still on the roll. Yesterday, Mario Draghi announced that the European Central Bank (ECB) will preserve its policy of Quantitative Easing (QE) for another year. The number of bonds that will be bought by the ECB will be trimmed, however. No reasons for investors to be concerned. One of the key players that has been keeping this long overdue bull market alive, is sticking to its guns. It is still very much disputed, whether or not QE has really helped the European economy, but this drug has definitely been good for stock prices. The abundance of cheap money has to flow somewhere and the stock markets are very happy to welcome banks, investment funds and, not to mention, all those citizens who are looking for an alternative for the historically low interest rates they get on their savings accounts. A nice tagline for the European Central Bank would be: ECB, sponsor of investors.

white-chapel-logo-smallThe Trump virus was still active yesterday, with major US indices reaching new heights, once again: S&P 500 (+0.22%), the Dow (+0.33%) and the NASDAQ (+0.44%). Volatility bounced off lows, however: the VIX gained more than 3% and our XIV ETNs lost 0.5%. Return for the year is now exactly 340%. Return for the quarter remains above the 40% line.

Trading signal: as a result of a change of momentum, White Chapel gave a trading signal at the end of Thursday’s session: a “V” (volatile) signal. As a result of that, we sold our inverse positions (XIV ETNs @45.41) this morning and bought volatile ETFs (UVXY ETFs @9.49).

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$44,000

+340.00%

+340.00%

+43.7%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 393%.

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René’s Reflections @ Friday: Time

With the New Year on our heels, we tend to be more reflective and introspective than we normally are. There is something to the milestones in our lives, regardless of the occasion, that makes us think about our place on the timeline of our life. Or even in a broader sense: about our place in time. Every year again, we raise a glass, stare at the fireworks and toast to the New Year, looking back on another year passed. And every year again, we almost can’t believe how quick the year went by. Could it be that there is some truth to the notion that time goes faster as we get older? Just like a celluloid film on a reel that spins faster toward the end? And even if this is just our perception, what difference would that make?
Now, you might think that it is a bit premature to talk about the New Year with still more than three weeks to go. But when you raise that glass, and stare at those fireworks, just think for a moment, how fast these three weeks have gone by…
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