CLIENT TALKING POINTS
YEN
Yen Down -0.5% after tapping the low-end of the @Hedgeye $115-118.50 immediate-term risk range (vs. USD); Nikkei Up last night and should be up again tonight on that – long Japanese Equities is another way to express #StrongDollar and we'll review that on the Macro Themes Call.
Germany
German (and European) Stocks love the Trump Win and #StrongDollar too (gives them Down Euro and some stock market reflation after a horrendous 1H of 2016); DAX +3.6% in the last month, and the 10yr Germany Bund Yield is +8bps this morning (that’s a lot in a day) to +0.36% (short German Bunds and US Treasuries).
Oil
Big buying opportunity yesterday with Oil < $51 WTI at one point, but this isn’t your 2015-2016 Oil Volatility (OVX) scenario – OVX barely budged at 33 yesterday and remains well below the @Hedgeye TREND resistance of 37; so we say you buy both the commodity and related securities today (XOP).
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/10/17 | 34% | 18% | 10% | 11% | 0% | 27% |
| 1/11/17 | 30% | 18% | 12% | 13% | 0% | 27% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/10/17 | 34% | 55% | 30% | 33% | 0% | 82% |
| 1/11/17 | 30% | 55% | 36% | 39% | 0% | 82% |
THREE FOR THE ROAD
TWEET OF THE DAY
JAPAN: Yen Down, Nikkei Up +0.2% on the bounce, remains bullish TREND @Hedgeye
QUOTE OF THE DAY
“Whoever is careless with the truth in small matters cannot be trusted with important matters.”
–Albert Einstein
STAT OF THE DAY
The West Virginia Univeristy men's basketball team defeated #1 Baylor last night 89-68. It was the 3rd time WVU has defeated the #1 team in the country over the school's storied history.
