Copy

Klocke Capital Group, LLC

Market Commentary - January 23, 2017


  THE TRUMP RALLY HITS SEASONAL HEADWINDS
 
Many of our astute readers will recall that one of our favorite seasonal indicators revolves around political election cycles. Given the inauguration has passed, we thought it would be in our readers' interest to review the average historical performance of the S&P 500 Index prior to and after a republican inauguration day.

We called on the Klocke Capital computers to generate the chart below which highlights the movement of the S&P 500 Index 60 days prior to and 60 days after a republican inauguration. We plotted the S&P 500 Index's current performance (red line) versus the average performance of the index (blue line) during past republican inauguration days. 

As the chart below highlights, the index typically exhibits weakness in the days following a republican inauguration.

 
The Y axis (vertical) represents the average performance growth of $1 invested in the S&P 500 Index 60 days prior to and 60 days after republican inauguration day. The X axis (horizontal) axis represents days. Price history since 1950. Data source: Yahoo Finance.

We interpret the data presented in the chart above as corresponding with our near-term bearish outlook. In light of our view, we suggest selling out of the money calls against existing positions and employing a put writing strategy for new purchases.

We continue to endorse our low volatility portfolios as the best method to manage your investment portfolio. For more information regarding our investment process, please visit our website at: www.klockecapital.com and our Facebook page or contact us at 877-991-7161.

Matt Klocke, CMT
Klocke Capital Group, LLC
www.klockecapital.com
Direct: 561-693-2667
Toll Free: 877-991-7161
Email: mklocke@klockecapital.com
 
 

Like Klocke Capital Group, LLC - Market Commentary January 23, 2017 on Facebook share on Twitter

Past performance does not guarantee future results.  There is no assurance these trends will continue.  The market value of securities fluctuates and you may incur a profit or loss.  This analysis does not include transaction costs and tax considerations.  If included, these costs would reduce an investor’s return.

Since option strategies involve unique risk considerations, tax consequences and commission charges, among other factors, listed options are not suitable for all investors.  This material must be preceded or accompanied by the  options  disclosure document titled "Characteristics and Risks of Standardized Options." This document can be obtained at the following link 
or from Klocke Capital Group, LLC.

Investment Advisory Services offered through Klocke Capital Group, LLC., a Registered Investment Adviser.  Klocke Capital Group, LLC does not accept orders and/or instructions regarding your account by email, voice mail, fax or any alternate method.   Transactional details do not supersede normal trade confirmations or statements.  E-mail sent through the Internet is not secure or confidential.  Klocke Capital Group, LLC reserves the right to monitor all e-mail.

Any information provided in this email has been prepared from sources believed to be reliable, but is not guaranteed by Klocke Capital Group, LLC and  is  not a complete summary or statement of all available data necessary for making an investment decision.  Any information provided is for informational purposes only and does not constitute a recommendation.  Klocke Capital Group, LLC and its employees may own options, rights or warrants to purchase any of the securities mentioned in this e-mail.  This e-mail is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material.  Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited.  If you received this message in error, please contact the sender immediately and delete the material from your computer.

Supporting documentation regarding this material will be supplied upon request. Please contact Klocke Capital Group, LLC if you would like to receive a list of all recommendations made via our newsletter for the past 12 months. Klocke Capital's ADV is available upon request.


Copyright © 2017 Klocke Capital Group, LLC, All rights reserved.