There is one big advantage of buying something from the worst rankings. The
worst performer is generally suppressed in value. We talked about rise in
Volatility from the start of the year. Even our annual outlook suggested
that NIFVIX is one of the top potential outperforming asset.

In barely two months, the index has shot up 50% from sub 20 values. We have
illustrated here the Jiseki cycles of the volatility index. All of the three
minor red, intermediate blue and primary grey performance cycles are
positive and are mapped to the left hand side (LHS) performance percentile
scale from 0-100%.

The Jiseki cycles suggest that the index has more upside and there is more
volatility and fear still ahead. Now one may technically call it rounding
bottom or reverse head and shoulder formation or start of an extending third
leg, when the seasonality turns up the asset performance should follow.  A
rise in 50% is the base effect  and might shoot NIFVIX up in rankings but
it’s too early to expect volatility to reverse lower.

Mukul Pal, CMT, Orpheus Capitals, Global Alternative Research