CLIENT TALKING POINTS
ATH
All-time remains a long time and whether people want to call it “over-done” and/or “overvalued” (code for they aren’t long enough), we'll simply call it the score. At 2303 the SP500 will finally signal immediate-term TRADE overbought – that is what it is ahead of a “sell-some on the news” of accelerating US GDP and Durable Goods reports tomorrow, but stay bullishly positioned.
Volatility
30-day realized volatility has been smashed to 6-7% - this is called the Pain Trade (for US stock market bears) and those who stayed shorted too early in 2006-2007 know this pattern all too well (30D vol got to as low as 5.3% in AUG-SEP 2016 – from SEP 2006 to FEB 2007 realized vol never went above and 8-handle and that’s 6 straight months!).
UST 10YR
Nice ramp to 2.54% on the 10yr Yield and staying with the Gold and TLT shorts appears to be the right call, for now. Inasmuch as US stocks (SP500) are signaling immediate-term overbought this morning, at $1177 Gold and 2.58% UST 10YR, long-term bonds should signal immediate-term TRADE oversold within their bearish intermediate-term TREND.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/25/17 | 26% | 20% | 16% | 10% | 0% | 28% |
| 1/26/17 | 26% | 20% | 16% | 10% | 0% | 28% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/25/17 | 26% | 61% | 48% | 30% | 0% | 85% |
| 1/26/17 | 26% | 61% | 48% | 30% | 0% | 85% |
THREE FOR THE ROAD
TWEET OF THE DAY
"Obamacare created a y-o-y comparison so enormous that healthcare stks have begun to unwind violently." -@HedgeyeHC app.hedgeye.com/feed_items/568
@Hedgeye
QUOTE OF THE DAY
“Put more trust in nobility of character than in an oath.”
–Solon
STAT OF THE DAY
Julio Jones has 83 receptions for 1,409 yards this season for the Atlanta Falcons.
