4 January 2018: MiFID II

MiFID II is the Markets in Financial Instruments Directive, a piece of EU legislation. Its aim is to boost transparency in the financial markets. Part of this directive are regulations concerning PRIIP (Packaged Retail and Insurance-based Investment Products): rules that dictate in which form information on financial products should be made available to potential buyers. One of these rules makes it clear that this type of product information should be available in the language of the customer. For many products, especially from the United States, this information is currently available only in English. This is true for the two financial instruments that are used by These Dutch Guys, UVXY and XIV.
MiFID II came into force at 2 January 2018. A substantial number of brokers across Europe has decided to stop selling those instruments which do not comply with European legislation. Gijs Nagel, director of broker DeGiro, thinks that the problem will be solved for most financial products in the short term.

white-chapel-logo-smallUS stock markets finished at records yesterday. The gains were mainly driven by energy and health-care stocks. The Dow (+0.40%) flirted with a psychological significant close near 25,000. The S&P 500 closed above 2,700, rising 0.6%, while the NASDAQ jumped 0.84%. Volatility eased: the XIV ended more than 6% lower at 9.15 points. UVXY ETFs had another bad day and closed 4.2% lower. XIV ETNs added 2.4%.
Danny Daredevil saw a continuation of his bad start to the year. His RSS dropped to almost -10%. Adventurous Anny´s RSS remained at 23%, as she is still holding cash. Solid Suzy and Lazy Larry keep climbing. Their RSS rose above 110%. Their AAR is approaching 150%.
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

-9.60%

-11.36%

-11.36%

-5%

Adventurous Anny Cash 6 March 2017

22.91%

0.00%

0.00%

28%

Solid Suzy XIV 6 March 2017

112.99%

5.64%

5.64%

148%

Lazy Larry
XIV 6 March 2017

112.99%

5.64%

5.64%

148%

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

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