29 August 2017: Rising volatility

If you are interested in volatility movements in the stock markets, like the authors of this blog, you cannot overlook the military activity in North Korea of recent time. Yesterday, Pyongyang decided to take another step in its challenge of the international community by firing a ballistic missile over Japan. Irrespective of the stress that this behavior is causing among Japanese citizens, the resulting political turmoil is something stock market investors don’t like. We can be sure that volatility will rise as an effect of this type of actions and that it will remain at a higher level until a solution has been found for this source of unrest.

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Most US stocks closed more or less unchanged Monday. The Dow closed 0.02% lower, while the the S&P 500 index gained 0.05%. The NASDAQ made a somewhat larger gain: +0.28%. Volatility-related securities exhibited a similar picture: the VIX was almost unchanged as it rose from 11.28 to 11.32 points. UVXY ETFs suffered a loss of 1.55% and XIV ETNs gained 0.86%.
Danny Daredevil is the only one holding UVXY ETFs: his RSS dropped to 79%. Adventurous Anny closed unchanged, as she is holding cash. Solid Suzy and Lazy Larry saw a small rise: their RSS rose to 23%.
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

79.35%

-55.51%

-58.80%

42%

Adventurous Anny Cash 6 March 2017

3.84%

3.84%

-25.11%

8%

Solid Suzy XIV 6 March 2017

23.01%

23.01%

-1.73%

54%

Lazy Larry
XIV 6 March 2017

23.01%

23.01%

-1.73%

54%

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

 

From Wednesday night to Sunday night, the 12th edition of the BUT Film Festival will take place in Breda. Tim and René are already mentally preparing for their third attendance. Like last year, they will attend the festival from the very beginning to the very end. And they will again cut back on their sleep, to update you throughout the festival, not only on investing matters, but also on the movies they saw. Five inspiring festival days and — hopefully — an interesting trading week, bring them on!