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Market Lab Report - FEAR is a four-letter word: VIX Volatility Model (VVM) IMPORTANT UPDATE 9-8-16

Q: Worried about one of the many market bubbles bursting so we replay the financial disaster of 2008 or worse? Answer: VIX Volatility Model (VVM) can beautifully exploit volatile markets with its profit-taking strategies for fast gains. 

Q: Worried about missing the next uptrend? Answer: VVM has had a number of large gains this year partly due to implementation of profit-taking strategies, but two large gains were due to capturing uptrends this year, one +23.2% gain earlier this year, and its current signal which is closing in on a +40% gain. Members could take partial profits here.

Q: Frustrated with trendless markets? Answer: VVM can profit even when the stock market isn't going anywhere. The S&P 500 has been trading sideways since mid-July but VVM is up handsomely over the same period. 

To give investors a better sense of the signals issued by the VIX Volatility Model (VVM), below is a graphic that illustrates how VVM takes advantage of volatile markets via its profit-taking strategies. Look for the red buy signal 'B'. This means profits of at least 14-15% were achieved on buy signals which activated the profit-taking strategy. This year, there have been six such signals. 

That said, patience is required at times when VVM's fail-safes kick in which are designed to limit losses. This can result in a number of whipsawed trades. But you dont go from zero to big profits in a straight line. 

In backtests going back many years, VVM has made huge gains by capitalizing on volatile markets such as 2000-2002, 2008, the flash crash of 2010, 2011, and even sideways markets with inherent volatility such as 2015. That said, the testing phase was not without its growing pains as the fail-safes needed to be fine-tuned as well as profit taking strategies implemented.

As for riding uptrends, its current signal is closing in on a +40% gain from buying the instrument XIV. 

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This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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