The S&P 500 experienced the worst start for the third term of a presidential cycle since 1939, however, Chris Kimble, of Kimble Charting Solutions, explains that he doesn’t follow the "So goes January, so goes rest of the year" opinion and shares why he’s more interested in price and what the Dow does from here.
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The third year of a President’s term is usually positive for the S&P 500 (SPX). The average gain for the S&P is over 15% during this cycle, a good percentage above an average year for the S&P.
The first month of this traditionally positive year didn't start off too well.
The performance this past month was actually the worst January during the 3rd year of the Presidential cycle since 1939. Ironically, the last time the S&P lost ground during this cycle was 1939 as well.
I am not of the opinion that portfolio construction should be based upon this cycle, nor the "So goes January, so goes rest of the year" idea.
I remain focused on price and what the Dow does from here, after hitting long-term resistance and this key Fibonacci extension level. I feel this is much more important.
By Chris Kimble, Founder, Kimble Charting Solutions
