CLIENT TALKING POINTS
Nasdaq
+5.5% YTD continues to make a series of higher-all-time-highs as High Beta remains one of the top style factors to be long of when growth and inflation are accelerating – Nasdaq should signal some exhaustion (overbought) closer to 5699 with a higher low of support now down at 5605.
Oil
Nice pullback to take advantage of this week as WTI bounced right off the low-end of my $51.78-54.20 risk range; what we think people are missing in Oil is the TRENDING break-down in Oil Volatility (OVX) which now has a risk rage of 27-32; just trade the range.
UST 10YR
Surprising drop in the 10yr yield to the low-end of my 2.33-2.55% risk range (especially surprising with Dollar Up and Nasdaq Up this week), but markets are designed to surprise us – we're still a seller of Low Beta Yield Chasing exposures relative to everything Higher Beta we like – we should see #InflationAccelerating US Import Prices tomorrow.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/8/17 | 22% | 22% | 18% | 12% | 0% | 26% |
| 2/9/17 | 23% | 22% | 17% | 14% | 0% | 24% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/8/17 | 22% | 67% | 55% | 36% | 0% | 79% |
| 2/9/17 | 23% | 67% | 52% | 42% | 0% | 73% |
THREE FOR THE ROAD
TWEET OF THE DAY
Cartoon of the Day: Snow Job app.hedgeye.com/feed_items/571
@Hedgeye
QUOTE OF THE DAY
“Spectacular achievements come from unspectacular preparation.”
–Roger Staubach
STAT OF THE DAY
Jerry Rice leads the NFL with 2008 career touchdowns.