20 December 2016: Immunity

wonderdokterTwo major geopolitical events happened on one day yesterday: the Russian ambassador to Turkey was shot dead in Ankara at an art gallery and at least twelve people were killed when a truck rammed into a Christmas Market in Berlin. Horrible events which shocked the world. But investors were unimpressed and their sentiment was not affected in a negative way. The medication that was administered by miracle doctor Trump a month ago has yet to lose its vigour. It is another clear sign that we are in bull territory at the moment: investors are immune to whatever news they are presented with. Only an intrinsic change of momentum will be able to stop that bull.

white-chapel-logo-smallUS markets barely reacted to the geopolitical events in the world (Ankara, Berlin) and all major indices made modest gains of 0.2% to 0.4%. Volatility eased rather strongly: the VIX lost 4% and our UVXY ETFs lost even 7%. Return for the year dropped below 300% and now stands at 279%. Return for the quarter slipped to below 25%.
White Chapel did not give a signal at the end of yesterday’s session and advises us to stick with our UVXY ETFs.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$37,916

+279.16%

+279.16%

+23.8%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 301%.

RS_v05-smallDuring the weekend, René attended an open air concert, performed by over a hundred birds. Gathered in the trees high above, they produced a cacophony of sounds as if they they were auditioning for (a remake of) Alfred Hitchcock’s “Birds“. One of the aspiring artists already showed a diva attitude. It apparently didn’t want to be photographed: as soon as it noticed that René was taking photos, it flew away.
birdsandtrees