US STRATEGY - FREE CITI

Yesterday, the S&P 500 closed down -0.4% on the day as concerns over financial reform  drowned out strong earnings from Caterpillar. On the MACRO front, the U.S. Treasury said it will approve an initial sale of 1.5 billion shares of Citigroup common stock. On the EU front, the possibility of a speedy bailout for Greece was stalled by German Chancellor Angela Merkel. 

 

Consumer Discretionary (XKY) outperformed yesterday, closing up +0.8%. That was followed by Basic Materials (XLB) at +0.4% and Industrials (XLI), closing up +0.2%. Those were the only sectors to close up on the day. Notable laggards were Healthcare (XLV) and financials (XLF), closing down -1.1.% and -1.6% on the day, respectively.  No doubt the government's plans to begin exiting it's 27% stake in Citigroup weighed on the sector.

 

The Dollar index closed up +0.2% on the day.  The Hedgeye Risk Management models have levels for the Dollar Index (DXY) at:  buy TRADE (81.09) and sell TRADE (81.89). 

 

Yesterday, the VIX closed up 5.1%. We currently have no position in the VIX, though we are managing risk around it. The Hedgeye Risk Management models have levels for the VIX at: buy TRADE (16.83) and sell TRADE (19.41). 

 

 Yesterday, Crude Oil closed down -1.1% on the day. The Hedgeye Risk Management models have levels for the OIL at: buy TRADE (80.35) and sell TRADE (83.87). 

 

In early trading, Gold is trading down -0.2%.  The Hedgeye Risk Management models have the following levels for GOLD – Buy TRADE (1,147) and Sell TRADE (1,165).

 

In early trading, Copper is trading down -1.5%. The Hedgeye Risk Management Quant models have the following levels for COPPER – Buy TRADE (3.36) and Sell TRADE (3.52).

 

In early trading, equity futures are trading below fair market value.  As we look at today’s set up, the range for the S&P 500 is 14 points or 0.4% (1,207) downside and 0.7% (1,221) upside. 

 

Today is an important day on the MACRO front. The calendar reads:

  • FMOC Meeting Begins
  • S&P/Case-Shiller Home Price Index
  • April Confidence Board Consumer Confidence

Darius Dale

Analyst

 

US STRATEGY - FREE CITI - S P

 

US STRATEGY - FREE CITI - DOLLAR

 

US STRATEGY - FREE CITI - VIX

 

US STRATEGY - FREE CITI - OIL

 

US STRATEGY - FREE CITI - GOLD

 

US STRATEGY - FREE CITI - COPPER