SP500 and Crude

We are into a strong level of support on Crude Futures at this current 34.00 level. A technical bounce should be in the cards for the short term. Crude and the SP500 is down 5.70% and 1.8% respectively at the time of this article. The fear that is in the air when it comes to crude price and oil companies is a postive indicator. Thus, Valencia Investments is taking full advantage of this opportunity and we feel the Valencia Select SP500 is uniquely positioned to benefit from this price distortion in the oil sector.

Please subscribe to the Valencia Select SP500 to benefit with us. The strategy is not on the grid because it hasn’t currently closed out 6 positions. It could be weeks to months before we do and I’d hate for potential subscribers to miss opportunities in the strategy due to the low turnover rate of Valencia Select SP500.

Disclosure: The oil sector only encomposses a relevant percentage of the overall portfolio to its strategy and is not a majority position.

Valencia Select SP500 top 50 holdings represent 91% of the overall portfolio. Below is a portfolio analysis of these 50 positions.

The Valencia Select SP500 is up 4.50% YTD while the SP500 is down -0.54% for the same period. The strategy is performing as it was developed with the intent of outperforming the SP500 while having a similar risk profile to the overall market.

Oil appears to have made a bottom with the February 11th low of 26.05 and is currently trading at 37.83, up 45% off its lows. The daily 20 SMA has crossed above the slower 50 SMA which is a positive indicator and hasn’t been seen in crude oil since late Sept. 2015. There has been a positive divergence as well on the MACD for this same period of time as oil has made a new low in the Q1 of 2016. Many indicators are lining up for the low in crude to be in at this point and a potential longer term bull market to begin in this commodity.

The Valencia Select SP500 will take advantage of this miss pricing on a relative risk adjusted basis compared to the overall SP500.

Valencia Select SP500

Hey ValenciaInvestment,

The stats for Valencia Select SP500 shows 80 total trades with 75-percent winning trades:

But it only shows 4 closed trades:

What am I missing? Where are the other 76 trades?

The other 76 trades are still open. Only 4 have been closed.