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V2 Model December 24, 2021 UPDATE and CHANGE

V2 Model December 24, 2021 UPDATE and CHANGE

December 24, 2021

Hello:

V2 PERFORMANCE

This week:

V2 0%

SPY 2.33%

This year:

V2 +34.92%

SPY +27.48%

RECAP

The major equity markets finished the week higher, as the Santa Claus rally took hold even amid concerns about the Omicron variant’s effects on the economy. The growth style paced the market’s gains, with particular strength in the consumer discretionary and technology sectors that powered the Nasdaq Composite to an even bigger weekly advance than the S&P 500 Index. Moreover, the Federal Reserve’s (Fed) hawkish stance on both inflation and thus interest rates also continue to weigh on investors’ minds.

The V2 Model was flat this week as we were in CASH.

A number of the V2 Ratios moved above their crossing points and as importantly closed above short-term downtrends. As such, we will make changes during Monday's session.

CHANGES

Buy SOXL (33%)

Buy UPRO (33%)

V2 ALLOCATION

SOXL (33%)

UPRO (33%)

CASH (33%)

NOTES

It was hard to sit in CASH this late this week as the market rallied. Looking back the market was down significanly on Dec. 16,17, and 20th. We then rallied for three straight days. The VIX dropped from 25.84 to 17.77 during that span. Below 20 is good. We remain concerned about Covid, Inflation, and higher interest rates heading into the new year. Related to those concerns, some defensive assets (treasuries, high beta shorts, and low volatility longs) remain in elevated positions. Hence we continue to hold some cash.

PLAN

Our plan for next week? Market trends may change and they may change rapidly. We will stay nimble and be vigilant to changes in either direction. We will follow the math.

Thank you for being part of the V2 family. We hope have a happy and healthy Holiday Season!

Chris

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