It’s getting hot in Spain (and we are not talking about the weather…). In an interview with the BBC, Catalonia’s President Carles Puigdemont stated that Catalunya will declare its independence from Spain in a matter of days. Spain’s King Felipe VI said in a televised speech that the organizers of this weekend’s referendum put themselves ‘outside the law’. He also warned that the situation in Spain was ‘extremely serious’ and called for unity. So far, stock markets have hardly or not at all reacted to the entanglements in Spain. This might change once the words of Carles Puigdemont become reality. Not only will the independence of Catalunya cause a lot of unrest and/or will it be harmful to the Spanish economy, but it might also act as a spark that will set nationalist thinking in such regions as Flanders and Scotland on fire. The European Union cannot longer keep itself sidelined in this matter.
All major US indices closed at record highs for the second day in a row, mainly driven by positive economic data. The Dow gained 0.37%, the S&P 500 rose 0.22% and the NASDAQ closed 0.23% higher. Volatility remained in ultra-low territories: the VIX closed at 9.51 points (+0.6%). UVXY ETFs had to take another loss: -0.86%. XIV ETNs recorded a small gain: +0.26%.
Danny Daredevil had to take a small step back, as he is holding UVXY ETFs. His RSS closed at 35%. Adventurous Anny is holding cash. Her RSS remained at 9%. Solid Suzy and Lazy Larry recorded a small gain for the day. Their RSS closed in further on 50%.
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