CLIENT TALKING POINTS
Earnings
US growth, inflation, and earnings all #accelerating explains largely why bears are being mauled – 422 of 500 SP500 companies have now reported aggregate SALES and EPS y/y growth of +4.6% and +5.1%, respectively (of the 81 Nasdaq names that have reported, aggregated EPS y/y EPS growth is +13.3%!).
Europe
Finally flashing an immediate-term TRADE overbought signal in the DAX (within a bullish TREND view) this morning w/ EUR/USD -0.3% (low-end of the risk range) at $1.05 and European Bond Yields oversold too (post Greek bailout terms); risk range on the German 10yr Bund = +0.25-0.38% (so low end of that range).
Utilities
Good spot to short Utes (XLU) at a lower-high on this Global Rates pullback, so we’ll add that to my top timely shorts list this morning (took Russia off the long side on yesterday’s +1% beta bounce in most things Energy).
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/21/17 | 40% | 16% | 14% | 12% | 0% | 18% |
| 2/22/17 | 45% | 16% | 11% | 11% | 0% | 17% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 2/21/17 | 40% | 48% | 42% | 36% | 0% | 55% |
| 2/22/17 | 45% | 48% | 33% | 33% | 0% | 52% |
THREE FOR THE ROAD
TWEET OF THE DAY
Cartoon of the Day: Europe's Fallen Stars app.hedgeye.com/archives/57452… via @Hedgeye
@KeithMcCullough
QUOTE OF THE DAY
“There are no magic plays. You win based on effort, unmet focus and being brilliant at the little details”.
–Steve Kerr
STAT OF THE DAY
The New England Patriots are 8-1 favorites to win Super Bowl LII.
