10 January 2016: 10 years of iPhone

It was ten years ago that Steve Jobs introduced the original iPhone. The first truly smart phone not only changed the way people use portable electronics, but also gave Apple’s company profits a tremendous boost. Apple stocks followed suit: right before the introduction of the iPhone, one Apple stock would have cost you $12. Yesterday, Apple closed at $119. Today, the Cupertino based company is relying very much on the revenues that are generated by the iPhone. Apple is struggling to come up with yet another breakthrough. As Steve Jobs made clear during his presentation in 2007: in 1984, Apple introduced the iMac, followed in 2001 by the iPod and in 2007 by the iPhone. Only a groundbreaking new piece of equipment has the ability to keep Apple stocks at the high levels at which they stand now. Steve Jobs is not around anymore to initiate or approve such an invention, however.

white-chapel-logo-smallU.S. stocks retreated Monday as the Dow Jones Industrial Average pulled back further from the psychologically significant 20,000 milestone at 19,887 (-0.38%), although the tech-heavy NASDAQ finished at an all-time closing high for a second session in a row (+0.19%). The S&P 500 lost 0.35%. The VIX rose 2% and our XIV ETNs closed almost unchanged (+0.15%). Our return since the start stands at 257%. Return for the year slightly improved to -11.55%.

Trading signal: due to a change of momentum, White Chapel gave a trading signal at the end of Monday’s session: a “V” (volatile) signal. As a result of that, we sold our inverse positions (XIV ETNs @ $54.39) this morning and bought volatile ETFs (UVXY ETFs @ $6.33).

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$35,654

+256.54%

-11.55%

-11.6%

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

RS_v05-small

René clearly remembers the moment that the legendary iPhone was introduced. Back in January 2007, he watched the online stream of the Macworld 2007 convention together with a friend. They both realized that this was not just a phone, or a gadget, but merely a game changer.
Recently, the media paid a lot attention to this memorable event. Perhaps this unwittingly led René into a mood of mild nostalgia. From his basement, he retrieved a 17 year old iMac computer, the G3 model ‘Blueberry’. He installed it on his wooden table, connected it to the internet with a cable (no wireless adapter on this machine) and to a keyboard.
While he stared at this iconic little machine in admiration, he wondered if it ever received some prize for Industrial Design. If not, that would be nothing short of a shame.
After he let the vintage computer come to room temperature, he switched it on. It started up as if it was last used just the other day. Unfortunately, an update to the latest MacOS was out of the question. The hardware is simply too old for that. But there are alternative operating systems, that even run on older hardware. That same evening, his good old Blueberry was acting as a Linux server, running Debian 8 ‘Jessie’. Now René is figuring out, what would be the best way to use it. Which is a luxury problem, since the possibilities are endless!