5 January 2017: Libor above 1 percent

Libor rose above 1 percent yesterday. Libor is the average interbank interest rate at which a selection of banks on the London money market are prepared to lend to one another. Since 2009, Libor was below 1%. Is this fact important to individual investors? Not directly, of course, because investors are not able to lend from banks as if they were a bank, but indirectly it might be a very important sign. Bullish investors will definitely read a lot into Libor’s passing of the 1 percent mark. For them, it is another building block for a continuation of the rally that started with the election of Donald Trump in November last year.

white-chapel-logo-smallUS indices continued their climb. The Dow added 0.3%, the S&P 500 0.6% and the NASDAQ 0.9%. Volatility eased further: the VIX lost 1 point (-8%). UVXY ETFs lost another 10% and dropped to 6.73. We sold our UVXY ETFs at the opening of the session at 7.31. XIV ETNs closed the day at 52.86 (+5% for the day). All in all, our return since the start climbed from 246% to 251%. Return for the quarter is now at -13%.
White Chapel did not give a signal at the end of Wednesday’s session.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$35,063

+250.63%

-13.02%

-13.0%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 245%.

ta_v05-small-invAlthough Tim was quite sure that he was using an ordinary photo app on his iPhone to take a picture of waving reeds, the resulting picture rather surprised him. Was there a secret setting in this app that was called ‘Generate Abstract Art Automatically’ or something…?!