ETF SWING & DAY TRADING

[mr_cassandra]

mvp-notes - why sp400?

The mvp signal system produces good results with all major, broadbased indexes. Examples qqqq, spy, Russell 2000 and sp400.

Years ago when I was testing this I loaded them all in and the sp400 produced the best results of all.

I think the reason why is found by looking at a long term chart of mdy versus qqqq or spy. It is by far the most resilient index with the best long term consistency. Pre Nasdaq bear, qqq was up past $100. Its now at 40.
Pre Nasdaq bear mdy was about 100, now 130+. That is a big, big, difference.

Its my opinion that this is because its full of mid cap companies who have two major things going for them. Also, they are usually NOT go-go popular companies prone to manias or crowd effect, not nearly as much as in qqqq.

1. They are larger that small caps and able to weather economic downturns much better.
2. They have not yet made it to the big cap world and therefore, their Ceo’s wake up hungry and still have the ‘eye of the tiger’ each morning. This 'still hungry attitude' will be reflected in a more resilient stock price, hence index performance.

Anyway, mvp works with all major indexes but results are best with the SP400.