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V2 Model November 20, 2021 UPDATE

V2 Model November 20, 2021 UPDATE

November 20, 2021

Hello:

V2 PERFORMANCE

This week:

V2 +4.12%

SPY +.35%

This year:

V2 +54.89%

SPY +26.56%

RECAP

The major equity markets finished the week mixed as inflation worries continued to play a role in investors’ minds amid an excellent third-quarter earnings season.

This week, growth names performed well compared to their value counterparts on the back of higher COVID-19 cases worldwide as potential lockdowns could spur increased business for the stay-at-home stocks. Are we entering a period similar to mid-2020?

V2 was up this week.

CHANGES

None.

V2 ALLOCATION

UPRO (47%)

TQQQ (53%)

CHARTS

V2 Ratio Consolidated UPRO. You can see blue and red EMAs are above the green crossing line. We remain long. You can also see we are in a consolidation box since Nov.3. We would like to see the ratio break out to the upside in the coming days.
V2 Ratio Consolidated TQQQ. You can see blue and red EMAs are above the green crossing line. We remain long. You can also see that we have broken out and retested the consolidation box. This is bullish.

NOTES

If inflation is going to impact the market, interest rates, and portfolio allocations, we should see a shift in the VTV:VUG ratio. Value vs. Growth. Value does better in inflationary periods and should outperform growth stocks. You can see in the daily chart below as of the close Friday that is not the case. This chart is one of the many ratios we track and aggregate in the V2 Model.

PLAN

Our plan for next week? 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.

Fortune Favors The Math!

Chris

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