What Are New Highs And New Lows Telling Us Right Now?

I’ve been looking at a lot of indicators to see when this near-term pullback will morph into something more positive. The chart above is for the total Us Stock Market New Highs minus New Lows over a five-day period. You can see when the new highs are losing to new lows reached -1000 (solid red line crossing red dashed line) the SP500 moved lower. And you and see when this number improved enough to cross the 200 EMA (green line) the market rallied for a number of months. Over the past 5 years, there were three occurrences of this with an average gain of 33% over the next 12 months. You can see right now we are still below the red and the green line. Markets are still in a precarious position. As we see more individual stocks start to make new highs, we will see it here and will consider adding to our long positions. That may happen. But it has not happened yet.

No single indicator gives market clarity. They each give a point of view that we factor into our model. This is not a prediction, it is a perspective that we need to pay attention to various possible outcomes.

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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.

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.

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