13 June 2017: Tech stocks under pressure

Tech stocks are under pressure the last couple of days. What does that mean? Probably not much. Technology stocks have the tendency to inflate themselves much more than other stocks in prosperous periods. This has to do with the promise of unknown success that is attached to technology and innovation. If you sell potatoes or screwdrivers, you know more or less what your future prospect is. If you are involved in the development of virtual or augmented or whatever reality, it is all less clear. Investors favor investments in the latter group of companies because of the chance they have of hitting gold.
After the recent rise of stocks in general and the strong gains of technology stocks in particular (the tech-loaded NASDAQ has surged more than 20% since the election of Donald Trump in November last year), it is only very natural that there comes a moment when a majority of investors think: Hmmmm, what happened the last six months? Does this all make sense? Although they do not know the answer, that moment of contemplation, that change of sentiment, is enough to bring stocks down. The fundamentals do not look that bad, so within a couple of days, it is very likely that a group of bargain hunters will bring the prices of tech shares back up again.

Major US stock-market indices closed lower on Monday, caused by a second straight session of firm losses in technology shares. The tech-heavy NASDAQ lost 0.52%. Also the S&P 500 (-0.10%) and the Dow (-0.17%) recorded losses. Volatility was on the rise. The VIX reached as high as 12.37 points intraday, but closed substantially lower than that at 11.46. A gain for the day of more than 7% nevertheless. UVXY ETFs profited, but relatively marginally: +2.44%. There is probably more to come… XIV ETNs took a step back and closed 1.14% lower.
Danny Daredevil was the only winning model for the day. His RSS rose to 393%. His AAR is above 200%. Adventurous Anny‘s RSS remained at 39%. The RSS of Solid Suzy and Lazy Larry dropped once again below 20%.
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

393.28%

22.37%

5.23%

201%

Adventurous Anny Cash 6 March 2017

39.23%

39.23%

14.33%

239%

Solid Suzy XIV 6 March 2017

19.14%

19.14%

8.78%

91%

Lazy Larry
XIV 6 March 2017

19.14%

19.14%

8.78%

91%

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

 

At his hidden forest retreat, after having read everything he wanted to read and having written everything he had to write, René decided it was time for a little challenge. With his camera on a tripod and himself on his mountain bike, he tried to find a way to disappear from the view of the camera, with the camera’s self-timer set to five seconds. Thanks to some creative, out-of-the-box thinking, his third attempt was successful. 😉