CLIENT TALKING POINTS
XLF
Bank stocks got slammed (XLF -2.4% on the day) to immediate-term TRADE oversold yesterday, so we signaled buy on BAC and am adding it to my Top 6 Long Ideas – whether it’s the Nasdaq, Energy Stocks, or Financials, we think you have to be patient and wait for days like yesterday as both growth and inflation continue to accelerate.
VIX
One major component of this 2 (going on 3) month rally #GrowthAccelerating assets is the combination of a TREND duration break-down of front month volatility and rising implied volatility premiums – put simply, PMs keep betting on a correction in beta that really hasn’t come; VIX risk range is now 10.91-13.16.
Oil
Elite talk out of #Davos “predicting a new era of Oil volatility” as OVX (Oil Volatility) continues to break-down; provided we don’t see a resurgence in OVX > 37, this is what we call a bullish to bearish TREND reversal in Oil Volatility; that’s bullish for Oil and its related securities, but from oversold levels, not after up days.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/17/17 | 29% | 17% | 16% | 10% | 0% | 28% |
| 1/18/17 | 25% | 20% | 17% | 9% | 0% | 29% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/17/17 | 29% | 52% | 48% | 30% | 0% | 85% |
| 1/18/17 | 25% | 61% | 52% | 27% | 0% | 88% |
THREE FOR THE ROAD
TWEET OF THE DAY
5 Things Investors Should Watch As Trump Era Begins app.hedgeye.com/insights/56596… via @Hedgeye
@KeithMcCullough
QUOTE OF THE DAY
"Sports do not build character. They reveal it."
-John Wooden
STAT OF THE DAY
As of right now, the New England Patriots are favored to win Super Bowl 51 at +150.
