Yesterday, Anthony Scaramucci was removed from his position after just 10 days in his function as the White House’s Communications Director. His departure could be regarded as the nth part of a comedy which goes under the name of The Trump Administration. It is remarkable that stock markets are virtually untouched by events like these. Are stock investors stricken completely dumb by the political madness that is surrounding the Trump administration or are high levels of complacency making stock markets totally immune to whatever happens?
The Dow closed at a record high on Monday, but the NASDAQ and the S&P 500 had to take a step back. The Dow rose 0.28%, whereas the NASDAQ fell 0.42% and the S&P slipped 0.07%. Big tech had to take a step back: Facebook closed 1.86% lower, Amazon.com lost 3.16% and Alphabet declined 1.34%. Volatility slightly eased: the VIX closed 0.29% lower. UVXY ETFs paid the price: -1.36%. XIV ETNs profited: +0.80%.
After a couple of positive sessions, Danny Daredevil recorded a loss. His RSS dropped to 194%. Adventurous Anny was still unchanged: her RSS remained at 33%. Solid Suzy and Lazy Larry picked up their winning mood after a number of trading days in which they took a small step back. Their RSS rose to 42%.
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
At the end of last week, Tim went to a fair in his hometown. This is one of the biggest fairs in Europe, which has been organized since 1566. Tim noticed that the rides at the fair get bigger every year. Some rides reach more than 60 meters in height nowadays.
He noticed something funny. All large rides, with such names as Booster, Chaos, Freefall, and Gladiator, were made of painted steel, mostly in the color white. One ride, however, with the also spectacular name Propellor, looked different. On the steel parts of this ride, patterns of steel were painted. (To see what it looked like, check out the picture below.) Undoubtedly, this was done to give the ride an even more impressive appearance. But to Tim, this had exactly the opposite effect. He could not let go of the thought that this ride in reality is made of cardboard, which the owners tried to camouflage by means of the painted patterns…