CLIENT TALKING POINTS
US Dollar
Nice ramp this week to immediate-term TRADE overbought within its bullish intermediate-term TREND – that’s 4 straight up weeks for #StrongDollar and we think consensus is finally starting to realize what Dollar Up, Rates Up, Stocks Up means for the US economy (Quad2); good day to buy Pounds and Canadian Dollars on oversold signals.
Reflation
The old inverse correlation impact starting to wear on both Commodities in the aggregate (CRB Index down another -1.3% yesterday) and Oil/Energy exposures like Russia (RTSI) which just broke intermediate-term TREND support of 1015 this morning; stay tuned on this one as our “Reflation’s Peak” Macro Theme has inflation peaking in Q1.
Russell (IWM)
If reflation peaks in Q1 (in rate of change terms), what happens is we go from Quad2 to Quad1 (real growth accelerating as reflation decelerates) – that’s been our call all along (going to Quad1 in the back half of 2017) and when/how the market prices that in is up the Mr. Market, but Quad1 is very bullish for the Financials, Tech, and the Russell.
Asset Allocation
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 3/2/17 | 29% | 21% | 14% | 13% | 0% | 23% |
| 3/3/17 | 25% | 23% | 15% | 13% | 0% | 24% |
Asset Allocation as a % of Max Preferred Exposure
| CASH | US EQUITIES | INTL EQUITIES | COMMODITIES | FIXED INCOME | INTL CURRENCIES | |
|---|---|---|---|---|---|---|
| 3/2/17 | 29% | 64% | 42% | 39% | 0% | 70% |
| 3/3/17 | 25% | 70% | 45% | 39% | 0% | 73% |
THREE FOR THE ROAD
TWEET OF THE DAY
Here's Why Stock Market Bears Are Wrong app.hedgeye.com/insights/57682… via @Hedgeye
QUOTE OF THE DAY
“I'm always trying to do as many different things as I can, just so when one is not doing so hot, maybe the other is still there.”
–Chris Stapleton
STAT OF THE DAY
J.T. Snow hit 189 homeruns and struck out 1,142 times over his 16 year MLB career.
