[COMPLIMENTARY] Top 3 Things | 10yr/Sectors/Gold

After the 4^th straight day of my LONG Only Asset Allocation model hitting all-time highs, will we get a buying opportunity?

1. 10YR – no matter what the jobs report says this morning, my Risk Range says buy the damn dip in Duration (TLT, IEF, etc.). Remember, this is the latest of lagging indicators and the Bond Market sniffs out #LaborSlowing way ahead of the Fed. UST 10yr Yield Risk Range has its lowest level of The Cycle at 3.29% and the top-end of the range is a big-lower-high at 3.58%
2. SECTORS – while Old Wall gets paid on “year-to-date”, your hard-earned-pile (of capital) gets paid on #CTD (Cycle-to-date). So where are Sector Returns for the slowest GDP quarter of The Cycle so far (Q2-to-date)? A: There are only 3 Sectors with positive returns for Q2 and we are LONG of all 3 of them. Utes (XLU) led gainers yesterday at +0.8% and I was buying the damn dips in both Staples (XLP) and Healthcare (PINK)
3. GOLD – how is my Asset Allocation Model hitting all-time highs with US Stocks (Russell 2000) down -14% since the end of JAN? A: Depending on the day I’ve had a 15-20% Asset Allocation to Precious Metals and related Equity Exposures. This isn’t an Old Wall pie chart. This is simply a #BetterWay.

Immediate-term @Hedgeye Risk Ranges: SP500 = 4027-4158; UST 10yr Yield = 3.29-3.58%

KM