28 March 2017: Market shake

For the first time since the surprise election of Donald Trump, stock markets shook yesterday. The VIX fluctuated as much as 21%. Investors have a difficult time to determine what to make of Friday’s refusal of the House of Representatives to support Trumpcare. Is it the prelude to future contingencies for Donald Trump or will the President learn quickly and reap the benefits from Friday’s loss when introducing his proposals for tax cuts and infrastructure expenditures? We should not be surprised if we were up for more roller coaster rides the upcoming weeks.

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Each of the major US indexes was down at least 0.8% at the beginning of yesterday’s trading session. But they ended the day on a much more positive note. The Dow was down 0.04%, the S&P 500 lost 0.20% and the NASDAQ was up 0.25%. The VIX shot up to as high as more than 15 points, but ended the day firmly below 13 points.
Danny Daredevil switched from UVXY to XIV at the beginning of yesterday’s session and his timing was almost flawless. UVXY opened up 8% in comparison to the close of the previous day. XIV gained 6% throughout yesterday’s session. Danny’s RSS rose from 270% to 324%. Danny is back in positive territory for 2017: up 5%.
Adventurous Anny traded cash for XIV ETNs at the beginning of yesterday’s session and added 7% for the day. Anny is up 15% since 6 March 2017.
Solid Suzy and Lazy Larry also profited from the rise of XIV: their returns are now at 6%.
No trading signals were given for any of our models at the end of yesterday’s trading session.

Model Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil XIV 1 January 2016

324.27%

5.25%

5.25%

221%

Adventurous Anny XIV 6 March 2017

14.91%

14.91%

14.91%

Later

Solid Suzy XIV 6 March 2017

5.82%

5.82%

5.82%

Later

Lazy Larry
XIV 6 March 2017

5.82%

5.82%

5.82%

Later

RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return

 

RS_v05-smallRecently, the weather in the Netherlands is almost perfect: blue skies, temperatures nearing 70 degrees Fahrenheit and almost no wind. According to René, spending days like these indoors, is “missing out big time”. So, whenever he can, he takes his mountain bike and rides to his hidden forest retreat in the vicinity of Breda. A couple of miles from nowhere, situated in one of Breda’s forests, there is no connecting road that leads to it. The place is difficult to access and therefore unknown to many, even to those who know the forest. It can only be reached by foot through the forest, by all-terrain bicycle or by car, in case you own a four-wheel drive, and the rain hasn’t turned the sandy path that leads to the property into a muddy mess. Of all the people René knows, only two know of its existence (Tim being one of them). There, with only the sounds of birds and insects surrounding him, and the warmth of the sun on his skin, he can feel himself in total harmony with the natural world. And he realizes that this is essentially all he needs to feel perfectly happy.

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