I was of three minds,
Like a tree
In which there are three blackbirds.
– Section II of Thirteen Ways of Looking at a Blackbird by Wallace Stevens
Various forces appear to be pulling at the markets. Team Tax Cut is defying gravity and is making sure that one record after another is being set. On the other side, a small army of skepticals is gathering. Their prominent thought: this bull market has gone one bridge too far. And the third force, you may ask. It is a distant force, a remote cousin to the blackbird. Starts also with a ‘B’, but ends with ‘lack swan’…
Some saw the good news in yesterday’s market (tax cuts!), some saw the bad side (tech stocks struggling). So stock prices were going everywhere. The Dow went up (+0.2%), the S&P made a minor loss (-0.1%) and the NASDAQ suffered a stronger loss (-1.1%). Volatility was also all over the place. The day started very volatile, but ended much calmer. Around lunch time, the VIX had lost more than 10%. But in the afternoon hours, the fear index made a steady climb and closed with a gain of 2%. UVXY ETFs were not able to undo the damage that was done at the opening of the session and in the morning hours: they lost 1.5%. XIV ETNs closed with a gain of 1%.
During lunch time, it looked like another black day for Danny Daredevil. But the afternoon hours erased most of his losses. His RSS closed at 15%. Adventurous Anny was still holding cash yesterday. Her RSS remained at 15%. Solid Suzy and Lazy Larry recorded a small gain and their RSS rose to 73%.
RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return
Two of our models gave a trading signal at the end of yesterday’s session: Danny Daredevil and Adventurous Anny. Danny switched from UVXY ETFs to XIV ETNs and Anny traded her cash for XIV ETNs at the opening of today’s session.
There are no mountains in The Netherlands.
Did you know that?
The Dutch band The Nits sang a song about mountains in The Netherlands.
It was called In The Dutch Mountains.
They were joking, of course.
But if there were mountains in The Netherlands, they probably would look a bit like those in the picture below.
In order to take this picture of mountains, René had to travel abroad.
No problem for him. He would have traveled there anyway. Not (just) to take pictures of mountains.
And if it were up to him, he would go back there tomorrow.