VIG Investment Newsletter
Posts
Quadruple Ratios For QQQ! Have A Great 4th!

Quadruple Ratios For QQQ! Have A Great 4th!

June 29, 2022

Good morning.

I have been getting ready for the 4th weekend. It got me thinking about the number 4 and quadrants. (Years ago I used to make my two young boys recite the quadratic formula before they could eat dinner).

That got me following QQQ and TQQQ very closely the past few sessions. If the market is going to turn around, the large growth and tech companies in the NASDAQ 100 will need to have better performance.

Below are 4 ratios that we track on a regular basis. I used one-hour charts with 21 and 100 EMAs (nothing magical - just one point of view):

QQQ vs RSP (equal weight SPY). This is a good ratio in that RSP gives more weight to non-tech areas. You can see we are still in a downtrend.
QQQ vs VIX (implied volatility). Still in a downtrend.
QQQ vs UUP (dollar). Still in a downtrend.
QQQ vs TNX (10-year yield). Still in a downtrend.

This past week QQQ tried to rally to several of these trend lines and failed. If we are going to see a sustained market rally, some or all of these ratios will need to lean back in favor of QQQ. Perhaps that will start as soon as tomorrow with an updated PCE (core inflation) number being reported.

For the year V2 is down roughly 3 percent this year. QQQ is down over 28%. A win for V2.

Have a great 4th! Think of the 4 QQQ ratios. Maybe have 4 beers? And if you have extra time, recite the quadratic formula 4 times - then have dinner.

Our V2 Model tracks over 120 asset class ratios on various time frames to assist us in deciding how and when to allocate our holdings. No single indicator, chart, or list gives market clarity. They each give a point of view that we factor into our model. We do not forecast. We follow the math. It has led us to remarkable long-term performance.

If you are not a Member and would like to see our V2 holdings, allocations, history, and changes as they occur I urge you to subscribe below.

You can learn more at thevigcompany.com

Distance=Victory

Chris

Use of The VIG Company LLC information and newsletters herein is at one's own risk. We are not registered, investment advisors. For more information please read here. Terms Of Service.