V2 Model Aug. 29, 2020 Update

August 29, 2020

Good Morning!

Welcome new members.

Here is how V2 and our benchmark for the SP500 (SPY) performed:

This week:

V2 up 11.6%

SPY up 3.27%

This year:

V2 up 190.33%

SPY up 10.08%

V2 had a strong week. Our holding,TQQQ, posted double digit gains and the V2 ratio is above cross over points, in bullish order and improved 16.35% for the week. All good.

Below is the chart of the V2 Ratio #2. A few couple fo things to point out:

The Ratio made a new higher high and is in bullish order.
RSI is in overbought territory. See the red oval. This may indicate we are do for a short term pull back.

I also enclosed a 5-year, weekly, ratio chart of QQQ vs TLT. This is one common measure of "Risk On" (QQQ) vs "Risk Off" (TLT, 20- year Treasuries) in the market. QQQ is also the basis for our current holding in TQQQ. You can see we are breaking out of a multi-year consolidation box. The longer we stay above this box, the more good things could happen in the longer term. There is an old saying, "The longer things go sideways the larger the movement may be". You can see we have been in the box for almost 3 years. So if we hold and extend above this area we could be seeing the start of a multi-year run up in QQQ.

The two points above are not forecasts. We must keep an open mind to changes in either direction. We must follow the math.

V2 remains long TQQQ.

The V2 Model has performed exactly as expected.

Distance=Victory

Chris

ps. Please invite others to join The Vig Company. And also, please, do not share the V2 Model allocations with others. We keep the monthly charges low for all as everyone pays their own way. Our information should not be copied or shared in any form.

Use of The Vig Company LLC information and newsletters herein is at one's own risk. We are simply sharing the results of our Models. Nothing should be construed as a recommendation or an offer to buy or sell any securities, and we are not liable nor do we assume any responsibility for losses incurred as a result of any information provided or not provided or not made available in a timely manner herein or on our website or using any other medium. We cannot guarantee the accuracy and completeness of any information furnished by us. We may buy, sell or hold any security listed in our information at any time. We are not registered investment advisors and have no understanding of your personal financial situation, risk tolerances, or investing objectives. Any investment decisions you make are your own own. Please do your own diligence when investing your hard earned money.