VIG Investment Newsletter
Posts
V2 Model Free Update - What A Week! All Clear To The Moon?

V2 Model Free Update - What A Week! All Clear To The Moon?

March 20, 2022

What week! The Sp500 surged over 6%.

So, are we all clear now? Nothing but clear skies ahead?

With war, interest rates rising, high inflation, and slowing growth have we really hit the bottom?

Here are two indicators our V2 Model track to help us figure it out.

The first is an annotated weekly chart of the SP500. You can see we smashed through the downward trend line. A great first step in a trend reversal. But we remain below the 20 week moving average (in blue). This will be a point of dynamic resistance, so there is work to do.

On the lower part of the chart, you will find the 10-week Rate Of Change indicator. When the ROC moves from below -9 to above -5 the probabilities of a bottom being in are much higher. That has happened over the past couple of weeks. We closed at -4.33 this week. In our book, this is good news.

The next chart is of the SP500 over the RSI for the High Yield Corporate Bond Index. You can see in the red circled area that we have only dipped below 30 to oversold territory 2 times in the past 10 years. And you can see when RSI moved back above 50 (red line) it was at a point past the "bottom" and good things happened going forward.

You can see where we are right now. Even with such a strong week for the SP500, We are still in oversold territory at 28.61. This indictor would say there is more work to do.

Our V2 Model tracks over 120 asset class ratios 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.