De Nederlandsche Bank (The Dutch Bank) is the central bank of the Netherlands. It presented its plans for the upcoming years yesterday. The Dutch Bank noted the formation of bubbles in the financial markets. Furthermore, these could be observed in the stock markets, in parts of the housing markets and commercial real estate markets, and in the markets of leveraged finance. But the good news is, according to The Dutch Bank, that Dutch banks are only to a minor degree involved in these bubbles. So, don’t worry and enjoy a good night of sleep.
All major US indices ended at records for the first time in three weeks. Strong earning reports were the main driver behind the gains. The S&P 500 rose 0.65%, the Dow added 0.69% and the NASDAQ jumped more than 1%. Volatility eased substantially, with the VIX entering single-digit territory once again. The fear index closed at 9.73 points (-9%). UVXY ETFs took another blow, losing almost 8%. XIV ETNs gained close to 4%.
Danny Daredevil lost considerably yesterday: his RSS dropped to 12%. Adventurous Anny is still holding cash. Her RSS remained at 15%. Solid Suzy and Lazy Larry took another hurdle and their RSS closed above 75% for the first time.
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