Last week marked the anniversary of the pandemic-related low in the stock markets. It was a volatile week overall, with a great deal of positive news. The decline in US T-bonds, progress in vaccinations, positive unemployment and rising consumer sentiment helped lift investor sentiment considerably. The volatility index (VIX), which measures the anxiety of S&P500 investors, fell to new year lows last week. The VIX has fallen by 30.07% since the beginning of the year on a closing price basis. In March alone, the index declined by 19.23% and by 49.31% since the year’s high.
The losers of the week were the US T-bonds with -2.24%, oil with -0.94% and gold with -0.35%. The winner of the week was the S&P500, closing by 1.48%. ONE SIGNAL delivered two short signals last week, with the second being wrong on Friday, but the built-in stop severely limited the loss for the day. Nevertheless, traders following ONE SIGNAL achieved returns of +1.10%.