CLIENT TALKING POINTS
Earnings
Continuing to see an acceleration in both SALES and EARNINGS as we move through EPS Season: 283/500 S&P names have reported aggregate y/y SALES and EPS growth of +4.3% and +5.9%, respectively. Financials (52 of 63 have reported) aggregate y/y SALES and EPS growth of +5.1% and +10.3%, respectively.
Euro
After tapping the top-end of my $1.05-1.08 immediate-term risk range last week, EUR/USD has been smacked back down to $1.06 (-0.8% this morning) and continues to signal bearish TREND inasmuch as Draghi continues to remind markets that he has no intention on tapering anytime soon.
FTSE
The strong inverse correlation b/t the FTSE and Pound remains obvious – on a #StrongDollar morning we have GBP/USD -0.8% and the FTSE bouncing +0.6% which is, importantly, back above my immediate-term TRADE line of 7176 support; we still like the Pound, but lower – would like to buy it back in the $1.20-1.22 range.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/6/17 | 23% | 22% | 17% | 12% | 0% | 26% |
| 2/7/17 | 22% | 22% | 18% | 12% | 0% | 26% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/6/17 | 23% | 67% | 52% | 36% | 0% | 79% |
| 2/7/17 | 22% | 67% | 55% | 36% | 0% | 79% |
THREE FOR THE ROAD
TWEET OF THE DAY
LIVE Q&A @ 4pm ET Tuesday: Join Neil Howe as he explains how his theories helped shape Trump strategist Steve Bannon app.hedgeye.com/insights/57111…
@Hedgeye
QUOTE OF THE DAY
“There is a time to take counsel of your fears, and there is a time to never listen to any fear.”
-George S. Patton
STAT OF THE DAY
The last 8 NFL MVP's to play in the Super Bowl have all lost.