VIG Investment Newsletter
Posts
V2 Model January 9, 2021 Update

V2 Model January 9, 2021 Update

January 09, 2021

Good morning!

Welcome new Members.

Here is V2 performance versus our benchmark of SPY.

This week:

V2 +10.05%

SPY +1.97%

This year:

V2 +10.05%

SPY +1.97%

The V2 Model had another good week. The major market indexes finished higher this week, with the Nasdaq leading the S&P 500 along with the Dow Jones Industrials. Moreover, international markets enjoyed a solid week. Emerging markets (MSCI EM Index) outperformed their developed international counterparts (MSCI EAFE Index), however, both indexes returned over 3%.

Of our holdings, TNA was the strongest this week up 17.76%. TQQQ and UPRO were up 4.66% and 5.80% respectively.

I have enclosed V2 Ratio #2 charts for each holding as of close Friday. You can see the faster (Orange) EMAs are still above upward sloping slower Green for each holding. As such, we remain long.

Also note points 1, 2, and 3. Momentum (as measured by MACD) broke out of downtrends from early December. This is a short term bullish indicator. Additionally, the demand for "risk-off" assets Gold, Bonds, Treasuries, and High Beta Shorts all decreased for the week.

Also of note, the VIX dropped 5.23% this week to close Friday at 21.56. For the market to improve we would like to see this trend towards 20 and below in the coming days.

I was asked yesterday if we should plan on a correction in Q1 of this year. Maybe. Maybe not. We do not forecast. We allocate to the math and facts in front of us. If markets decline and the V2 Model morphs into something of concern we will change allocations.

Our plan this week? We will stay flexible and keep an open mind to changes in either direction. We will follow the math.

V2 currently holds:

TNA (40%)

TQQQ (31%)

UPRO (29%)

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.