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.

Above 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.

Distance=Victory

Chris

The V2 Model has gained an impressive 1,454%% from 2016 through 2021.

6X the performance of SP500 (2016-2021)

+83.27% 3-Year Annualized Returns (2019-2021)

+69.22% 5-Year Annualized Returns (2017-2021)

V2 Newsletter performance rank compared to all ETFs:

Top 10% 2021 (#243 out of 2867)

Top 1% 3-Year (#9 out of 1896)

Top 1% 5-Year (#4 out of 1896)

Market Data From Morningstar and Etrade.

We do not anticipate what is going to happen. We allocate based on where things are. We do not forecast, we follow the math and work to get on the right side of the next extended trend.

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V2 is a proprietary investment Model the results of which we make available in our newsletter. We give our holdings, changes before they occur, our allocations, and performance on an ongoing basis. You can discover more about the Model, our performance, and how it works by checking out our website.

We have researched and developed a pool of common and popular ETFs. We will select which ETFs to invest in based on market conditions and our short-term, medium-term, and long-term trends. We will also model asset class ratio behavior for our decision-making process. Leverage will be used when appropriate and we will short the market in a downturn. If no investments meet our rules, we will go to cash. We will change holdings at any time during the month.

The investment picks may be in large-cap growth, treasuries, leverage, derivatives. We may short the market or go to cash. Holdings may include SPXU, SDS, SH, SPY, SSO, UPRO, TLT, AGG, TQQQ, SQQQ, or CASH at any time.

Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only. We may own, buy, or sell any security listed here at any time. Do your own diligence when investing your hard-earned cash. Follow The Vig Company on Facebook.

You can learn more about the model, its holdings, and how it works by going through each link on our website. The V2 newsletter is available for $15 a month. And of course, you can unsubscribe at any time.

THE VIG COMPANY LLC INFORMATION AND NEWSLETTERS ARE NOT A RECOMMENDATION TO BUY OR SELL SECURITIES. WE ARE SIMPLY LISTING THE RESULTS OF OUR MODEL. WE MAY BUY, HOLD, OR SELL 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. PLEASE DO YOUR OWN DILIGENCE WHEN INVESTING YOUR HARD-EARNED MONEY.

What A Week! Are We All Clear To The Moon?