Another volatile week for markets closed with the Sp500 down 2.9%. To think about and consider what might be coming next we took a long view of the VIX.

Above is a chart of the VIX with the 5 day moving average for the past 20 years. You can see we have only moved above 33 eight times. What happened next?

You can see the small arrow annotations on the lower portion of the chart. In three cases the market fell further. in two cases we moved sideways for a bit before moving higher. And in three cases the SP500 moved higher. This tells us it is difficult to make a judgment one way or another. And with that in mind, we should allocate our holdings accordingly.

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.

If you are not a Member and would like to see our 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.

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What Does The VIX Tell Us About Where We Are Headed Next?