V2 Model July 18, 2020 Update

Good Morning!

V2 performance this week:

V2 down 5.34%

SPY up 1.30%

Year to date:

V2 up 106.06%

SPY up 1.02%.

Below is our Ratio #2 chart for V2. Here is what it illustrates:

  1. You can see the purple ratio line experienced some volatility. This was and continues to be expected.

  2. You can see blue consolidation box. The ratio is moving sideways since early July. After such an extended run up it helps to consolidated before perhaps moving higher.

  3. You can see the orange moving average ratio line is flat for the last few periods, but it is still above the slower moving average (in green). This is bullish.

  4. You can see in the very short term the Chande Trend Meter is sloping up and in the green. So we have a positive very short term trend.

  5. Not pictured here, but also note, TQQQ dropped 5.34% this week. But the #2 ratio only dropped 2.41%. This tells us there was not sustained increased market demand for shorts or more defensive holdings. It tells us that the rally may be broadening to other areas beyond just the base index of QQQ. This should be helpful to sustain positive growth. In summary, we did not see a big run to safety. That may happen, but it has not happened yet.

V2 remains long TQQQ.

The V2 Model has performed exactly as expected.

Distance=Victory

Chris

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