26 April 2017: Geopolitical issues???

It feels like it has been months and months ago that markets worried about geopolitical issues: Syria, North Korea and the like. But it was in fact less than two weeks ago that it looked like we were heading for World World III and that the Middle East was about to explode. And now see what has been happening since the beginning of this week: stocks are selling like hot cakes and indices are reaching all-time highs. Welcome to the state of mind of the average stock market investor! These are the wild mood swings that can be observed, at any level. The adventures of volatility during the month of April present a good impression of what our models are trying to deal with. Sometimes they act in unison, sometimes they differ. But our overall goal is to make them all (very) profitable. Although three of our four models were introduced only one and a half month ago, so far we consider our mission successful: all of four models have a positive return since they were introduced.

white-chapel-logo-smallU.S. stocks climbed Tuesday, lifted by a series of upbeat earnings reports. The S&P 500 added 0.61%, while the NASDAQ gained 0.71% and the Dow even 1.12%. Volatility stabilized more or less after Monday’s plunge: the VIX closed slightly lower at 10.76 points (-0.74%). XIV ETNs continued their climb, adding another 2.4%. UVXY ETFs had to take another loss: -4.8%
As a result, Danny Daredevil suffered another loss. He saw his RSS drop to 312%. Adventurous Anny was unchanged. Solid Suzy and Lazy Larry continued their climb and they are now well above 10% at an RSS of 12.5%.
None of our models gave a trading signal at the end of yesterday’s session.

 

Model Holds Start date

RSS

YTD

QTD

AAR

Danny Daredevil UVXY 1 January 2016

312.24%

2.27%

-12.06%

193%

Adventurous Anny Cash 6 March 2017

21.78%

21.78%

0.00%

310%

Solid Suzy XIV 6 March 2017

12.52%

12.52%

2.74%

133%

Lazy Larry
XIV 6 March 2017

12.52%

12.52%

2.74%

133%

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

 

Meanwhile in Japan

After a comfortable flight, carried out by a decent airline that treats its customers well, René landed safely at Kansai International Airport just before 9 AM this morning (Japan Standard Time). “It’s good to be back!” René was thinking, when he left the airport terminal building and entered the Kansai Airport Station in order to get to Shin-Osaka (the Shinkansen station in Osaka). The entrance of the railway station was decorated in “Sakura-style”:


A couple of hours later, he was having a delicious Tuna-mayo Donburi for lunch. Well, actually, ‘delicious’ would be the understatement of the year. And if anyone ever tries to make you believe that Japan is an expensive country, then don’t believe it. If you know where to go, you get a lot of ‘bang for your buck’. Where else can you get such a tasteful lunch for only $4.50?

Tuna-mayo Donburi