Wednesday, December 19, 2012

LM and TAQK Updates...12.19.12

The RM versions of LM and TAQK remain vested although the continuing weakness in bonds and gold has kept the models under performing the SPY in the short term.  I need to modify the 4 year APR returns as the end of 2012 approaches and that we will done by next week.

Volatility continues to be the name of the game.  The VIX (volatility index) was down 5 % yesterday, while today it's already up 5.5%.  What we are seeing within this context is that the % daily change in the VIX is NOT necessarily related to the % change in SPY or the DOW, but moving in response to another set of drivers.  Option expiration is this Friday and that may be part of it, but the uncertainty factor is making this a real whipsaw market for now.