15 February 2017: B-word

In reply to a question on the financial situation of Greece that was asked in the Dutch parliament yesterday, Eurogroup chairman Jeroen Dijsselbloem used the b-word. If the IMF were to abandon Greece, the country would immediately face bankruptcy. Dijsselbloem could not imagine dat the IMF and the Euro countries will let this happen. Stranger and more unexpected things have happened lately, however. Investors should not wave aside a real Greek tragedy as an impossible scenario and take their precautions.

white-chapel-logo-smallBears? Nowhere to be seen. US markets continued their rising yesterday. The Dow, NASDAQ and S&P 500 added 0.4% on average. Volatility eased and the VIX closed firmly below 11 points at 10.74. Our XIV ETNs had another bright day and added 4.7%. Return of our model since the start rose to 199%. The annual average return stands at 164%.

Trading signal: due to a change of market state, White Chapel gave a trading signal at the end of Tuesday’s session: a “V” (volatile) signal. As a result of that, we sold our inverse positions (XIV ETNs @ $69.49) this morning and bought volatile ETFs (UVXY ETFs @ $18.71).

Accumulated capital at close of previous trading day

Return since start

Return this year

Return this quarter

$29,857

+198.57%

-25.93%

-25.9%

Our initial capital was $10,000 at 1 January 2016. Our average Annual Return is 164%.

RS_v05-smallIn the Netherlands, the yearly influenza epidemic appears to be a persistent one. It has entered its twelfth week already. Last week, 97 people with influenza-like illness (ILI) per 100,000 inhabitants were reported. That was the eleventh week that this number stayed above the threshold of 51 persons in 100,000. According to NIVEL, the national institute for health services research in the Netherlands, the epidemic is far from over. On the contrary: it looks like it hasn’t reached a plateau yet, and it even seems to be increasing again. Thanks to the dry winter air, the virus can spread much more easily. One more reason to be happy about the weather forecast for the upcoming weeks!