9 January 2017: Playing hard to get

The Dow is playing hard to get. The most commonly known stock index in the world reached an intraday high of 19,999.63 points, before it closed at 19,963.80 points last Friday. Will it be able to reach 20,000 points soon? As far as the bullish optimists are concerned: yes! They see no reason why this Trump rally would not continue: a recession is not likely to happen and corporate earnings look solid. But more bearish investors do not trust these high valuations of stocks: it is rare that stocks are as expensive as they have been recently. What are these valuations based on, they wonder. This tug of war has been going on since 20 December and it might continue a few more days. But, eventually, the optimists will win. For the time being…

white-chapel-logo-smallAll major US indices made moderate gains last Friday, posting gains between 0.3 and 0.6%. Volatility eased some more, with the VIX getting closer to the lowest level seen the last 52 weeks (-3.2%). Our XIV ETNs added 1.3%. Return since the start climbed to 256%, while the return for this year improved to -11.7%.
White Chapel did not give a signal at the end of Friday’s session, but is getting closer and closer to a trading signal, however. Prepare for some action this week.

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$35,601

+256.01%

-11.69%

-11.7%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 248%.

ta_v05-small-invAt night, like the world around me, I turn pitch-dark.
When it’s raining, I can’t stop crying.
On sunny days, I’m a second sun.
When it’s freezing, I’ll keep an eye on the world.
To the unimaginative, I’m just a roadside mirror.