NatalaTech

The effect of compounding returns becomes more conspicuous during periods of high market turbulence. During periods of high volatility, the effects of compounding returns cause an inverse ETF's investment results for periods longer than one single day to substantially vary from one times the inverse of the underlying index's return.

The close of $44.74 on Dec. 31 was the input to my proprietary analytics. This resulted in my semiannual value level at $44.84, my quarterly pivot at $47.90 and my annual risky level at $56.51. The close of $49.73 on Jan. 31 was also input to my analytics, resulting in my February risky level at $56.00. My weekly risky level is $53.89.

The daily chart shows that TJX stock declined 26.7% from its all-time intraday high of $56.64 set on Oct. 1 to its Dec. 24 low of $41.49. The stock is consolidating this bear market decline with a gain of 19.1% from the low. Note how the stock has been riding the 200-day simple moving average higher since Jan. 18, with the average now at $49.54.