V2 Model February 5, 2022

February 05, 2022

Recap

The major equity markets finished the week higher even as inflation, higher interest rates, and tighter Federal Reserve (Fed) policy remained on investors’ minds. Investors scooped up beaten-down names at the end of the day Friday to lift the averages. While S&P 500 Index companies have mostly delivered better-than-expected results during earnings season, relatively high equity valuations for high-growth companies have added increased volatility to the markets.

V2 was down slightly this week and we moved from a partial short position to cash.

Performance This week / YTD

V2 -1.17% / -11.13%

SP500 +1.53% / -5.53%

Changes

None.

V2 Holdings (Allocation)

CASH (100%)

Charts

Below is the chart for V2 Ratio #2 for UPRO. You can see the ratio remains below the short-term downward trend line in red. You can also see the ratio made an attempt to cross but was rejected (red arrow). The VIX remains elevated at 23.22. As such we are not making changes at this time.

If you like to see some of the current things we are watching check out Should We Be Freaking Out About A Market Crash?

Plan

Our plan going forward? 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.

Distance=Victory

Chris

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