Somewhere high up in the mountains, there once lived a bear. He had been asleep for very, very, very long. But he was feeling so comfortable in his warm den. He was quite sure that winter must have been long overdue by now, but the bear just turned to lie on his other side. And although the twittering of the birds outside of his den must have reached a deafening level, the bear refused to get up. A few weeks ago, he had opened one eye and glanced outside. Vaguely, he believed that he could see a bull, who was happily eating some grass in the meadows below his den. But only seconds later, he dismissed it as a dream. And he continued his winter sleep.
Then, one day, he was suddenly woken up by the sound of a heavy vehicle. Before he understood what was going on, he was put in a cage on a lorry. The bear was driven off the mountain on a long road. On his way down, he passed many meadows. The bulls which were populating these fields, were totally shocked by the view of the bear and ran off. The bear was brought to the market square of the nearest town and for the coming months his role was to entertain the inhabitants of the town.
All major US indices saw their winning streaks interrupted yesterday. Investors were less positive about the prospects for tax cuts and the latest corporate earnings. The S&P 500 dropped 0.40%, the Dow shed 0.23% and the NASDAQ closed 0.64% lower. Volatility shot up, especially during the last hour of trading. The VIX edged up more than 10%. UVXY ETFs followed suit and gained more than 6%. XIV ETNs closed 3% lower.
For a change, Danny Daredevil was yesterday’s winner. His RSS rose to 12%. Adventurous Anny is still holding cash. Solid Suzy and Lazy Larry suffered a considerable loss since long. Their RSS dropped to 64%.
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
The Chapel Family – Episode 13
Danny stepped back, his mouth so wide open that his chin almost touched the floor. “What… on earth…” he stammered. He turned his head and looked at Anny, Suzy and Larry. They gazed at him in awe, their eyebrows raised, their actions frozen. Danny then looked back at the lady in the door opening. She handed the helmet over to Danny. “Here. I’m going to take you for a ride. There is something I need to show you. Come on, hop on,” she said, as she walked to her motorcycle and kickstarted it back to life. Danny put on his coat and said something to his appalled housemates, but his words were not audible due to the noise of the motorcycle. He then put on his helmet and left the house. Out into the night they went.