V2 Model January 29, 2022

Performance This week / YTD

V2 -2.09% / -10.07%

SP500 +.91% / -6.95%

Changes

None.

V2 Holdings (Allocation)

SH (49%)

CASH (51%)

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 this week as we moved to a partial short position on Monday.

Below is the V2 Ratio #1 Chart for UPRO. You can see the ratio has improved to a logical stopping area. You can also see the orange and blue EMAs remain well below the cross line in bearish order. Our math indicates this is a counter-trend rally until proven otherwise. The VIX remains elevated at 27.66. As such we are not making changes at this time.

If you like to see some charts we use for a market perspective check out our blog.

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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