Yesterday evening’s bomb explosion at Manchester Arena shows how relative everything is. In a split second, the biggest happiness can turn into the greatest misery. Just like that. Apart from the never-ending pain that will affect the parents of the children involved, killed or injured, there is another sad observation to be made. The world at large appears to get used to tragic events like these. This is especially true when the reaction of stock markets is taken into consideration. As we explained in this blog at various occasions, stock markets are for the main part built on sentiment. And this sentiment was de facto unchanged after the Manchester explosion. The sharp drop in stock prices last week makes clear that the unpredictable behavior of a US President has so much more effect on the mood of investors. It makes you think…
US stocks had another good day yesterday, recovering most of last week’s sharp losses. Tech and industrial stocks rallied. The Dow finished up 0.43%. The S&P 500 index rose 0.52% and the NASDAQ added 0.82%. Volatility retreated further: the VIX closed below 11 points and lost almost 10% for the day. UVXY ETFs paid the price and also lost almost 10%. XIV ETNs profited and gained more than 4%.
All of our models reaped the benefits of this rise of XIV ETNs. Danny Daredevil saw his RSS climb to 412%. YTD for Danny is now 27%. Adventurous Anny‘s RSS rose to 38%. Her AAR stands at a stunning 346%. Solid Suzy and Lazy Larry are closing in on their all-time high: their RSS reached more than 15% yesterday.
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
In our blogpost of 13 March, Tim wrote about the more than 150 Social Sofa’s (or ‘bènkskes’ as they are called in the local dialect) that can be found in Tilburg. One of these bènkskes is located at the campus of Tilburg University. René loves to sit there, reading, writing, or just watching the huge carps darting around in the water, whenever he visits Tilburg University on sunny days.
This time, René noticed there was a post-it attached to it. It was probably put there a couple of days ago already, since the writing had almost faded by the sun to the point of illegibility. It said:
Don’t miss out!
René’s curiosity was raised. What exactly was this text referring to? What event (if any) is about to happen on 10 October 2020, at 10:22 PM? Searching the net didn’t provide any specific clues. If anyone knows more than we do, please leave your comment in the comments section below.