25 January 2018: Sit and wait

The US stock markets have been somewhat directionless the last couple of days, especially if compared to the surge patterns of the previous period. Yesterday’s trading session was three sessions in one. In the early morning hours, the markets went up and remained strong. Then after that and over lunch, prices of stocks declined. And in the last part of the session, markets went back up again. The S&P could have closed more than 0.5% higher or more than 0.5% lower, but in the end, it closed virtually unchanged.
There is not a lot of news that stock traders can use for guidance. No tensions caused by a government shutdown or geopolitical issues, no good vibes because of outstanding earnings, no news from the central banks around the globe. All they can do is sit and wait. And hope that yesterday’s up-and-down-ride will not turn into a real rollercoaster…

white-chapel-logo-smallUS stocks retreated from record territory Wednesday as technology names came under pressure. The Dow was the only main index to write black figures (+0.16%). The S&P 500 recorded a small loss of 0.06%. The NASDAQ had to take a bigger step back (-0.61%). Futures traders are getting more nervous than stock traders and as a result volatility is on the rise. The VIX gained more than 3% and closed well above 11 points yesterday. The VIX has now closed above 11 points for seven straight sessions. The last time this happened was five months ago. UVXY ETFs recorded another gain and closed almost 5% higher. XIV ETNs lost 2.3%.
Danny Daredevil is getting closer and closer to positive territory. His RSS rose to -3%. Adventurous Anny´s RSS remained unchanged at 23%, as she is still holding a cash position. Solid Suzy and Lazy Larry are off their highs and closed lower at an RSS of 108%.
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

-3.11%

-5.00%

-5.00%

-2%

Adventurous Anny Cash 6 March 2017

22.91%

0.00%

0.00%

26%

Solid Suzy XIV 6 March 2017

107.86%

3.09%

3.09%

127%

Lazy Larry
XIV 6 March 2017

107.86%

3.09%

3.09%

127%

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

 

RS_v05-small

This is the first in our series of free thematic wallpapers.
We kick off this series with the recurring theme ‘reflections in nature’.
You are free to download it and use it in any way you like — no restrictions at all.
Install it on your computer’s desktop (recommended), print it out and hang it on your wall (it’s a wallpaper), distribute it…
Personal use, commercial use, it’s all okay. Anything goes.
The picture was taken Tuesday afternoon by René during a walk in the Mastbos forest. The forest that stretches from the city of Breda all the way to the Dutch-Belgian border.