ATH’s on Friday for the SP500, Nasdaq, and Russell 2000 – finally signaling overbought…

Client Talking Points

Japan

Post the friendly Abe visit to the USA and a #StrongDollar ramp vs. the Yen, the Nikkei’s +3% pop in the last 2 trading days registers an immediate-term TRADE overbought signal inasmuch as Yen (vs. USD) signals oversold – we still like Japanese stocks, but we'd book some gains here.

Copper

Youge +5.8% week-over-week move in an important proxy for our #InflationAccelerating call here in Q117 seeing follow through to $2.78/lb this morning but that signals immediate-term TRADE overbought within its bullish TREND too – you should continue to see y/y inflation ramps in the US CPI and PPI reports this week.

VIX

US Equities at the highs and Volatility has crashed (-27.5% since the election) despite consensus concerns about Trump – but that’s yesterday’s news; this morning we're registering my first higher-low (within my immediate-term range) for front-month VIX at 10.36; book gains in US equity beta is the call on that.

Asset Allocation

CASH US EQUITIES INTL EQUITIES COMMODITIES FIXED INCOME INTL CURRENCIES
2/12/17 36% 18% 15% 12% 0% 19%
2/13/17 45% 15% 13% 10% 0% 17%

Asset Allocation as a % of Max Preferred Exposure

CASH US EQUITIES INTL EQUITIES COMMODITIES FIXED INCOME INTL CURRENCIES
2/12/17 36% 55% 45% 36% 0% 58%
2/13/17 45% 45% 39% 30% 0% 52%
The maximum preferred exposure for cash is 100%. The maximum preferred exposure for each of the other assets classes is 33%.

Three for the Road

TWEET OF THE DAY

This week in Hedgeye cartoons. Get our daily cartoon emailed for free: hedgeye.com/cartoon/email

@Hedgeye

QUOTE OF THE DAY

“You are going to make mistakes in life.  It’s what you do after the mistakes that counts.”

-Brandi Chastain

STAT OF THE DAY

Charles Oakley spent 10 years with the Knicks, averaging 10.4 points per game.