My favorite S&P Sector on the long side remains Housing (ITB). My fav on the short side = Financials (XLF). From a top-down perspective, both of these views are congruent with my bearish view of long-term interest rates.

With the USD up, Oil down #deflation risk right back on in the last 2-days, don't forget how #Deflation's Dominoes fall. Eventually they get to debtors and banks (see January 2015 for details).

Citigroup has plenty of interconnected risk to both commodities and emerging markets. #StrongDollar perpetuates those risks.

KM

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