There was a time, not so long ago, that whatever Donald Trump said or tweeted, this made stock markets go up (or, for that matter, down). But this has changed. President Trump’s yesterday’s statement that he’s ‘looking into’ breaking up the big Wall Street banks had no effect on stock markets at all. Are the markets getting used to Donald Trump? Are they able to predict more effectively what the President’s next move will be? Or are we back to the situation in which investors realize that under many of Trump’s predecessors the overall effect of a US President on stock markets turned out be quite marginal? Why would this under a Trump Presidency be any different? Maybe it is just psychology: people can adapt themselves to the most extreme changes and even start to fall in love with them. It is sometimes referred to as ‘Stockholm syndrome’.
Stock markets closed mixed yesterday. The NASDAQ saw another substantial gain (+0.73%) and the S&P 500 recorded a small gain (+0.17%). The Dow had to take a step back: -0.13%. Volatility proved that it could go lower than this year’s lowest low: the VIX closed just above 10 points at 10.11. UVXY ETFs had to take another blow (-7.62%). XIV ETNs recorded another substantial gain and once again closed at an all-time high (+3.93%).
Danny Daredevil‘s return closed at a level lower than where he started the year: his YTD is now -6%. His RSS is at 280%. Adventurous Anny is still holding cash. Her RSS is unchanged at 22%. Solid Suzy and Lazy Larry had a good day: their RSS rose to 17%.
None of our models gave a trading signal at the end of yesterday’s session.
RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return
Meanwhile in Japan
Sensō-ji, Asakusa, Taitō-ku, Tokyo. Japanese ladies in kimono
Tokyo Skytree, Observatory Corridor. Smartphone addiction at 450 meter altitude