27 July 2017: Careful and deliberate

The Federal Reserve kept interest rates unchanged on Wednesday. Furthermore, the Fed announced that it expected to start winding down its massive $4.5 trillion balance sheet ‘relatively soon’ in a sign of confidence in the US economy. The central bank of the US remains faithful to the path it has taken: the decisions the Fed makes are careful and deliberate. Stock market investors will like this method. Stock prices will not get disrupted by such a cautious approach, yet the Fed will start creating room for future measures, if necessary. Expect stock prices to remain at the current level for some time, in anticipation of the outcome of the adventures of Donald Trump in political Wonderland.

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US indices posted small gains, closing at all-time highs on Wednesday. The S&P 500 made the smallest gain: +0.03%. The NASDAQ added almost 0.2% and the Dow was the winner of the day among the major indices: +0.45%. Volatility was slightly on the rise. The VIX left the area of extremely low levels but is still very low: it rose almost 2% to 9.60 points. UVXY ETFs were in the green for a second day in a row: they closed 0.24% higher. XIV ETNs recorded another (small) loss: -0.17%.
Danny Daredevil was the only one of our models who recorded a small gain: his RSS rose to 188%. Adventurous Anny‘s RSS remained at 33%. Solid Suzy and Lazy Larry saw their RSS drop to 43%.
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

187.64%

-28.64%

-33.92%

96%

Adventurous Anny Cash 6 March 2017

32.57%

32.57%

-4.39%

105%

Solid Suzy XIV 6 March 2017

43.04%

43.04%

14.28%

149%

Lazy Larry
XIV 6 March 2017

43.04%

43.04%

14.28%

149%

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

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