CLIENT TALKING POINTS
SPY
Registering only its 2nd immediate-term TRADE overbought signal since Trump was elected – so today isn’t the day you buy! With 30-60day realized volatility pounded to new cycle lows, bears are finally capitulating.
USD
Almost signaling immediate-term TRADE overbought as well (oversold levels for Euro and Yen vs. USD = 114.25 and $1.05, respectively) and Oil (WTI) should signal overbought again > $54, so just stay with the process – risk ranges are leading the way.
Europe
Easily the most bearish economic/market signal this week has been the breakdown in some southern European Equity markets as their respective bond yields rise – Italian Stocks down another -0.5% this morning and 10yr yield +7bps to 2.23% (+33bps in the last month).
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/9/17 | 23% | 22% | 17% | 14% | 0% | 24% |
| 2/10/17 | 36% | 18% | 15% | 12% | 0% | 19% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/9/17 | 23% | 67% | 52% | 42% | 0% | 73% |
| 2/10/17 | 36% | 55% | 45% | 36% | 0% | 58% |
THREE FOR THE ROAD
TWEET OF THE DAY
Replay | Inside Bannon's Brain with "The Fourth Turning" Author Neil Howe app.hedgeye.com/archives/57111… via @Hedgeye
QUOTE OF THE DAY
“The bachelor party. The whole night. It's... Things got out of control and, uh... we lost Doug.”
–Phil (The Hangover)
STAT OF THE DAY
Central Park recieved 9.4 inches of snow yesterday.
