CLIENT TALKING POINTS
Nasdaq
Not the 1st thing we opted to signal buy-more of yesterday (XOP was) as it was the 1st down day from the all-time closing high; the implied volatility premiums in both the Nasdaq and SP500 remain +24-25% (vs. 30-day realized); that’s one of the many reasons why we think the Pain Trade (from the right price) remains up, not down.
Oil & Gas Stocks (XOP)
Down -2.8% on the day, XOP signaled immediate-term TRADE oversold yesterday and the 30-day implied volatility signal in XOP is even higher than SPX at +30% (as a buyer on red, I like that); Oil’s Volatility signal (OVX) continues to signal a bullish-to-bearish TREND reversal (that’s bullish for Energy assets in general).
Russia (RSX)
Obviously a levered bet on both Oil and #InflationAccelerating, the Russian stock market has corrected for a few days after signaling immediate-term TRADE overbought last week in Real-Time Alerts; 1145 on the RTSI is the level we're interested in buying some of that exposure back – patience pays in this macro market.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/30/17 | 34% | 17% | 14% | 11% | 0% | 24% |
| 1/31/17 | 30% | 19% | 15% | 13% | 0% | 23% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 1/30/17 | 34% | 52% | 42% | 33% | 0% | 73% |
| 1/31/17 | 30% | 58% | 45% | 39% | 0% | 70% |
THREE FOR THE ROAD
TWEET OF THE DAY
Cartoon of the Day: Faster Than A Speeding Bullet app.hedgeye.com/feed_items/569
@Hedgeye
QUOTE OF THE DAY
“Venus told me the other day that champions don't get nervous in tight situations. That really helped me a lot. I decided I shouldn't get nervous and just do the best I can.”
–Serena Williams
STAT OF THE DAY
Dion Lewis only has 64 carries for 283 yards this season.
