CLIENT TALKING POINTS
USD
US Dollar Index -0.6%, Yen +0.9%, Euro +0.6%, Pound +0.5% - all close to the top/bottom of their respective immediate-term risk ranges in a counter-TREND move post the Trump Show; with the Nasdaq having made its 4th straight all-time closing high (SPX 2 pts off its ATH), you are going to have counter-TREND corrections.
UST 10 YR
Dollar Down, Rates Down, Gold Up – all of this is one big macro move that we think you fade (again); both the US 10yr -5bps at 2.32% and Gold at $1203 provide another opportunity to do what we’ve been doing on counter-TREND days for the last 2 months – looking for a hawkish US PPI print tomorrow w/ US #InflationAccelerating.
VIX
Any time front month VIX gets to 10-11, you’re making equity sales (after you bought US Equity Beta in the VIX 13-14 range); if the 10.16-13.39 risk range for the VIX changes, I’ll be the first to let you know – but this remains a bull market in High Beta, complimented by Volume/Volatility signals, until proven otherwise.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/11/17 | 30% | 18% | 12% | 13% | 0% | 27% |
| 1/12/17 | 30% | 18% | 13% | 12% | 0% | 27% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/11/17 | 30% | 55% | 36% | 39% | 0% | 82% |
| 1/12/17 | 30% | 55% | 39% | 36% | 0% | 82% |
THREE FOR THE ROAD
TWEET OF THE DAY
whole surface has shifted lower but USO skew at its both negative tilt in over 2 years (110 vs 90% and 120 vs 80% strikes)
dty
QUOTE OF THE DAY
“There are no constraints on the human mind, no walls around the human spirit, no barriers to our progress except those we ourselves erect.”
–Ronald Reagan
STAT OF THE DAY
The Dallas Cowboys average 4.8 yards per rushing attempt.
