1. HOW MANY BRICKS DOES IT TAKE TO COMPLETE A BUILDING MADE OF BRICKS??
WHILE YOU ARE WAITING
HOW MANY BRICKS DOES IT TAKE TO COMPLETE A BUILDING MADE OF BRICKS??

2. DON’T BE MESSIN WITH TEXAS

3. BIGFOOT INVESTMENTS - OPEN FORUM
May 4, 2017
WELCOME!
Volume #290

4. AGENDA WELCOME! ADMIN NOTES QUOTE OF THE DAY SWAPS AND SPREADS
OPTIMISM GAUGE
DIAGNOSTICS GAGE
FED TRACKER
MAY PORTFOLIO CHANGES
SUM AND SUBSTANCE
HIGH IMPACT
WEEKLY INTELLIGENCE
GLOBAL PERSPECTIVE
DAVID’S CORNER
ADVISOR INPUT
QUESTIONS/COMMENTS

5. THANK YOU! “NOTES” IF YOU USE ANY OF OUR SLIDES, PLEASE REMEMBER TO
HAVE THEM APPROVED BY YOUR COMPLIANCE DEPARTMENT
WE’LL KEEP EVERYONE ON MUTE SO WE DON’T GET FEEDBACK
PLEASE SEND US A QUESTION – WE’LL GET TO IT ASAP
WE WILL TAKE YOU OFF MUTE IF YOU RAISE YOUR “HAND”
THANK YOU!

6. If you have questions or concerns please let us know.
BIGFOOT ADMIN NOTE:
Due to a change in the way NASDAQ OMQ charges for Mutual Fund quotations, we are now downloading the data on a two-day delay. This will result in a delay in posting the weekly trade signals until Sunday and will also delay the Watch List signals and other system pricing for two days.
We regret any inconvenience but the cost for daily quotations is basically prohibitive. Also, since we are dealing with funds, the delay, in most cases, should not be material in the execution of trades.
If you have questions or concerns please let us know.

7. BigFoot Investments is now on Twitter, LinkedIn!

8. Don’t Forget To Join Our “Group”
BigFoot On LinkedIn!
Don’t Forget To Join Our “Group”

9. “QUOTE” OF THE DAY: My uncle’s dying wish – he wanted me in his lap….
…he was in the electric chair.
Rodney Dangerfield

10. Optimism Gauge
As of: 5/4/2017

11. >50-day MA/>100-Day MA
Change
Measuring Our Economy
Last Update: 5/4/2017
Weekly Updates
New Monthly Updates
Indicator
Current Value
Prior/Metric Value
St Louis Fed Financial Stress Index
(Rev)
+1.0
Chicago Fed National Act Index (3 Mon M/A)
+0.03
(Rev)
-.50
Unemployment
4.5%
4.7%
+2.00
Weekly Jobless Claims (4Wk Mov Av)
243,000
242,750
ECRI Weekly Index (Against 52 Wk Av)
143.2
144.1 (Rev)
+.50
Conf Board Leading Indicators (NEW)
126.7
126.2
University of Michigan Sentiment – Final
97.0 (Final – Apr 2017)
96.9 (Final – Mar 2017)
Monthly Retail Sales – ex Autos (Adjusted)
375,828 (Mar -2017)
375,677 (Feb-2017) Rev
NFIB Small Business Sentiment
104.7 (Mar -2017)
105.3
ISM Manufacturing
54.8 (Expansion Line = 50)
57.2
Economic Capacity Utilization
76.1%
75.7% (Rev)
Stock Market Moving Averages
Weekly Data Points
>50-day MA/>100-Day MA
N/A
S&P Case-Shiller 20 City Comp Index (YoY)
5.9% (Feb)
5.7% (Jan) (Rev)

12. Economic Optimism Index
Measuring our Economy 10 20 30 40 50 60 70 80 90
100
Economic Optimism Index
Current:
Prior:
90.08%
READING AS OF: 5/4/2017
Current Reading:
90.08%
Trend: Negative
Prior Reading:
95.77(Rev)
Bias: Positive

13. Week of: May 1st, 2017 BigFoot Investments
Market Diagnostics
Week of: May 1st, 2017
BigFoot Investments

14. SENTIMENT INDICATORS Week of May 1st - 2017
1. AAII Investor Survey
2. TSP Sentiment Survey
3. NAAIM Survey of Manager Sentiment
4. CBOE Volatility Index
INTERNAL INDICATORS
5. S&P D MA and 200D MA AND 2/10 MA
6. NYSE Bullish %
7. S&P 500 Bullish % ($BPSPX)
8. Percent of NYSE stocks above 200DMA
9. Percent of NYSE stocks above 10WMA
or 50DMA ($NYA50R)
10. NYSE 52-Week New Highs and New Lows
11. Percent of S&P500 stocks above 200DMA
12. Percent of S&P500 stocks above 50DMA
ADDED INDICATORS
13. Option Sentiment
14. Option Buyers Sentiment Gauge (OBSG)
15. Consumer Sentiment Index
16. Nasdaq Sentiment Index
17. Rydex Nova/Ursa Sentiment Indicator

15. Week of May 1st, 2017
29.41%
Prior: 17.64%

16. FOMC INTEREST RATE DECISION/STATEMENT
READY, SET …..HIKE!
MEMBER
DISTRICT
TOPIC
LINK TO SOURCE
FOMC INTEREST RATE DECISION/STATEMENT
Fischer
Vice Chair
Friday
Williams
San Francisco
Evans
Chicago
Yellen
Chair
Rosengren
Boston
Sunday

17. Blah, Blah, Blah – pretty much as usual Maintained FDFD: 75-1.00bp
FED COMMENTS
Blah, Blah, Blah – pretty much as usual
Maintained FDFD: bp
Maintained policy of reinvesting principal payments from Agency securities and rolling over maturing Treasury securities
Discount rate 1.5%
Still a bit obfuscated on inflation (“close”, “somewhat below”, “low”, “little changed”)
“Economic conditions will evolve in a manner that will warrant gradual increases in the Fed Funds Rate”
“Rates likely to remain, for some time, below levels expected to prevail in the longer run”
Kept RRP agreements in place at 75bp
No dissenting votes
Source: Federal Reserve

18. 2’S IT……FOR NOW
51.6
Source: CME; Federal Reserve

19. Credit Anticipates-Equity Confirms
Swaps and Spreads
Rate
Prior
Current
Status*
Libor/OIS
0.26
Euribor/Eonia
-0.027
DTCC Repo - Agency
Discontinued
DTCC Repo - MBS
0.956
0.863
DTCC Repo – Treasury
0.915
0.846
High Yield
4.07
3.79
Fed Reserve Currency Swaps-Short
45 (ECB)
0 (BOJ)
80 (ECB)
Fed Reserve Currency Swaps-Long
2-Year Swap Spread
0.317
0.277
TED Spread
0.348
0.299
As of: 5/3/2017 COB
*Note: Status = No major impact
Status = Negative Impact
Status = Moving Worse

20. EARNINGS UPDATE Bloomberg, Citi
Source: Source: Standard & Poor’s, FactSet, J.P. Morgan Asset Management, Bloomberg, Citi

22. WHO IS AND WHO AIN’T
Source: Bespoke Investments

23. MAY PORTFOLIO CHANGES

24. May 2017 Stock Picks IN: COST OUT: MHK TOP 25 STOCKS May-17 RANK
TICKER
NAME
SECTOR
INDUSTRY 1 FB
Facebook Inc
10 - Technology
Computer Services 2
CELG
Celgene Corporation
08 - Health Care
Biotechnology & Drugs 3
ULTA
Ulta Beauty Inc
09 - Services
Retail (Specialty Non-Apparel) 4
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order) 5
GOOGL
Alphabet Inc 6
BABA
Alibaba Group Holding Ltd 7 EW
Edwards Lifesciences Corp
Medical Equipment & Supplies 8
AGN
Allergan plc 9
COST
Costco Wholesale Corporation 10
DHI
D.R. Horton, Inc.
02 - Capital Goods
Construction Services 11
AAPL
Apple Inc.
Communications Equipment 12 V
Visa Inc
Business Services 13
CBS
CBS Corporation
Broadcasting & Cable TV 14 GD
General Dynamics Corporation
Aerospace and Defense 15
DIS
Walt Disney Co 16 HD
Home Depot Inc
Retail (Home Improvement) 17
FDX
FedEx Corporation
11 - Transportation
Air Courier 18
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers 19
USCR
US Concrete Inc
Construction - Raw Materials 20
DAL
Delta Air Lines, Inc.
Airline 21
DOW
Dow Chemical Co 22
XOM
Exxon Mobil Corporation
06 - Energy
Oil & Gas Operations 23 C
Citigroup Inc
07 - Financial
Regional Banks 24
ARNC
Arconic Inc
Metal Mining 25
BAC
Bank of America Corp
As of April 28th, Subject to change.

25. Investment Style of the Portfolio
TOP 25 STOCKS
May-17
ULTIMATE SCREEN-BASED LIST
RANK
TICKER
NAME
Popular
Value
Growth
Quality
Sentiment 1 FB
Facebook Inc
YES 2
CELG
Celgene Corporation 3
ULTA
Ulta Beauty Inc 4
AMZN
Amazon.com, Inc. 5
GOOGL
Alphabet Inc 6
BABA
Alibaba Group Holding Ltd 7 EW
Edwards Lifesciences Corp
#N/A 8
AGN
Allergan plc 9
COST
Costco Wholesale Corporation 10
DHI
D.R. Horton, Inc. 11
AAPL
Apple Inc. 12 V
Visa Inc 13
CBS
CBS Corporation 14 GD
General Dynamics Corporation 15
DIS
Walt Disney Co 16 HD
Home Depot Inc 17
FDX
FedEx Corporation 18
WLK
Westlake Chemical Corporation 19
USCR
US Concrete Inc 20
DAL
Delta Air Lines, Inc. 21
DOW
Dow Chemical Co 22
XOM
Exxon Mobil Corporation 23 C
Citigroup Inc 24
ARNC
Arconic Inc 25
BAC
Bank of America Corp
As of April 28th, Subject to change.

26. Beta of the Portfolio – May 2017
RANK
TICKER
NAME
SECTOR
INDUSTRY
BETA
Weight
Weighted Beta 1 FB
Facebook Inc
10 - Technology
Computer Services
0.67
0.04
0.0268 2
CELG
Celgene Corporation
08 - Health Care
Biotechnology & Drugs
1.78
0.0712 3
ULTA
Ulta Beauty Inc
09 - Services
Retail (Specialty Non-Apparel)
0.56
0.0224 4
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order)
1.43
0.0572 5
GOOGL
Alphabet Inc
0.97
0.0388 6
BABA
Alibaba Group Holding Ltd
0.76
0.0304 7 EW
Edwards Lifesciences Corp
Medical Equipment & Supplies
0.61
0.0244 8
AGN
Allergan plc
1.11
0.0444 9
COST
Costco Wholesale Corporation
0.91
0.0364 10
DHI
D.R. Horton, Inc.
02 - Capital Goods
Construction Services
1.13
0.0452 11
AAPL
Apple Inc.
Communications Equipment
1.21
0.0484 12 V
Visa Inc
Business Services
0.96
0.0384 13
CBS
CBS Corporation
Broadcasting & Cable TV
1.60
0.0640 14 GD
General Dynamics Corporation
Aerospace and Defense 15
DIS
Walt Disney Co
1.20
0.048 16 HD
Home Depot Inc
Retail (Home Improvement)
1.07
0.0428 17
FDX
FedEx Corporation
11 - Transportation
Air Courier
1.17
0.0468 18
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers
1.68
0.0672 19
USCR
US Concrete Inc
Construction - Raw Materials 20
DAL
Delta Air Lines, Inc.
Airline
0.87
0.0348 21
DOW
Dow Chemical Co
1.15
0.046 22
XOM
Exxon Mobil Corporation
06 - Energy
Oil & Gas Operations
0.88
0.0352 23 C
Citigroup Inc
07 - Financial
Regional Banks
1.65
0.066 24
ARNC
Arconic Inc
Metal Mining 25
BAC
Bank of America Corp
1.40
0.056
1.00
1.10
For a Portfolio with 100% invested in Equity – Beta of Portfolio= 1.10

27. Beta of the Portfolio – April 2017
RANK
TICKER
NAME
SECTOR
INDUSTRY
BETA
Weight
Weighted Beta 1 FB
Facebook Inc
10 - Technology
Computer Services
0.67
0.04
0.0268 2
ULTA
Ulta Beauty Inc
09 - Services
Retail (Specialty Non-Apparel)
0.60
0.024 3
CELG
Celgene Corporation
08 - Health Care
Biotechnology & Drugs
1.78
0.0712 4
MHK
Mohawk Industries, Inc.
04 - Consumer Cyclical
Textiles - Non-Apparel
1.19
0.0476 5
AMZN
Amazon.com, Inc.
Retail (Catalog & Mail Order)
1.46
0.0584 6
GOOGL
Alphabet Inc
0.97
0.0388 7
BABA
Alibaba Group Holding Ltd
0.76
0.0304 8 EW
Edwards Lifesciences Corp
Medical Equipment & Supplies 9
AAPL
Apple Inc.
Communications Equipment
1.25
0.05 10 V
Visa Inc
Business Services
0.95
0.038 11
DHI
D.R. Horton, Inc.
02 - Capital Goods
Construction Services
1.14
0.0456 12
DIS
Walt Disney Co
Broadcasting & Cable TV
1.20
0.048 13
AGN
Allergan plc
1.15
0.0460 14 GD
General Dynamics Corporation
Aerospace and Defense
0.74
0.0296 15
CBS
CBS Corporation
1.65
0.066 16
WLK
Westlake Chemical Corporation
01 - Basic Materials
Chemicals - Plastics and Rubbers
1.69
0.0676 17 HD
Home Depot Inc
Retail (Home Improvement)
1.08
0.0432 18
FDX
FedEx Corporation
11 - Transportation
Air Courier
1.16
0.0464 19
USCR
US Concrete Inc
Construction - Raw Materials 20
DAL
Delta Air Lines, Inc.
Airline
0.83
0.0332 21
DOW
Dow Chemical Co
0.046 22
BAC
Bank of America Corp
07 - Financial
Regional Banks
1.45
0.058 23 C
Citigroup Inc
1.67
0.0668 24
XOM
Exxon Mobil Corporation
06 - Energy
Oil & Gas Operations
0.88
0.0352 25
ARNC
Arconic Inc
Metal Mining
0.92
0.0368
1.00
1.12
For a Portfolio with 100% invested in Equity – Beta of Portfolio ≈ 1.12

28. CHANGE IN BETA Apr-17 OLD MHK 1.19 May-17 NEW COST 0.91 AVG. BETA

29. May 2017 Growth Stock Picks
As of April 28th, Subject to change.

30. May 2017 Growth Stock Picks COST
As of April 28th, Subject to change.

31. May 2017 Growth Stock Picks
As of April 28th, Subject to change.

32. May 2017 Growth Stock Picks
As of April 28th, Subject to change.

33. May 2017 Growth Stock Picks
As of April 28th, Subject to change.

34. May 2017 Growth Stock Picks
As of April 28th, Subject to change.

35. SUM
SUBSTANCE

36. KEEP YOUR EYE ON THE BALL
WEEKLY MACRO DATA
KEEP YOUR EYE ON THE BALL

37. Personal Income/Spending Employment/Productivity
WEEKLY HIGH IMPACT
GDP/Growth
Sentiment
Manufacturing
Personal Income/Spending
Non-Manufacturing
Oil/Dollar
Fed
Employment/Productivity

38. NOT GREAT (SLOWEST IN 3 YEARS) BUT NOT ALL BAD
Q1 GDP often slumps
Average growth rate over the last 7 years 1.0% Q1 and 2.5% Q2
Tax schedules – seasonal issues
Residential investment up 13.7%
Government spending down 1.7%
Real final sales to purchasers (excludes inventories/exports) up 1.5%
$39.3B drop in inventories subtracted .9 bp from GDP
Source: BEA; J.P. Morgan

39. WHAT “THEY” THINK
Source: Atlanta Fed

40. BELOW EXPECTATIONS BUT UP M/M
Although this high level of sentiment has yet to translate into
faster consumer spending growth this year, we acknowledge
that soft data tends to lead hard data by a few months, and
remain upbeat about the near-term outlook for growth.
Ned Davis Research
Source: University of Michigan

41. SLIGHT DECREASE BUT STRONG DATA AND IMPROVED OUTLOOK
Source: Conference Board

42. A READ ON THE INDEX
Source: Chicago Fed

43. DOWN SLIGHTLY BUT STILL ABOVE HISTORICAL TREND
Source: ISM

44. OUTPUT DOWN BUT HIRING AND PRICES UP

45. WELL…THAT DOG WON’T HUNT
Source: BEA

46. A DOWNWARD UPWARD..HOPEFULLY
Total construction – down 0.2%
Total private construction - flat
Total public construction - 0.9% (mainly commercial)

47. JUST OK
AGAINST 175K EST
Source: ADP

48. SURVEYS SUGGEST THAT BUSINESS ACTIVITY IS GROWING AT A SLOWER PACE
Forecast: 52.5
Actual: 53.1
Prior: 52.7
Current: 53.2

49. SLOWER, BUT CONTINUED GROWTH IN MARCH
Source: ISM

50. WHERE’S THE BEEF?
Source: BLS

51. BELOW FORECAST AND ANEMIC….BUT CAPEX UP
Source: Census Bureau

52. Growth and the Bond Market
WEEKLY INTELLIGENCE
Auto Sales
Three For the Money
Trade Deficit
Growth and the Bond Market

53. “PEAK” AUTO HAS PASSED BUT NUMBERS OK
Source: Motor Intelligence

54. 3 CHARTS TO WATCH
Source: Investing.com

55. OUCH!
Source: WSJ

56. BALANCE OF PAYMENTS CURRENT ACCOUNT CAPITAL ACCOUNT (CHANGE IN ASSETS)
WHAT’S A BALANCE OF PAYMENTS?
WEAKER DOLLAR HELPS THE NUMBERS
BALANCE OF PAYMENTS
CURRENT ACCOUNT
CAPITAL ACCOUNT
(CHANGE IN ASSETS)
EXPORTS
INCOME RECEIPTS
IMPORTS
INCOME PAYMENTS
NET TRANSFERS
∆ IN FOREIGN OWNED ASSETS IN THE U.S.
∆ FINANCIAL DERIVATIVES
∆ FOREIGN RESERVES
∆ U.S. ASSETS ABROAD
∆ U.S. RESERVES (FED)
Private ownership
Government
ownership
THESE SHOULD EQUAL
Source: Various

57. Treasury curve continues to flatten, with the 10yr – 2yr yield spread now near pre-election levels. Markets don’t have faith in longer-term growth improving meaningfully from the current levels.
Source: WSJ

58. OVERALL: DATA POINTS STATUS Comments Growth/GDP Manufacturing
Anemic
Manufacturing
Expanding
Non-Manufacturing
Employment
Skills issues – but strong overall
Housing
Strong
Sentiment
More sentiment than hard data but still optimistic
Income/Spending
Income stagnant – Spending hesitant
Oil
Supply/Demand debate – OPEC Cuts/Shale production
Interest Rates
Rates in change mode – creates uncertainty
Fiscal Policy
Possible but uncertain

59. Global Global Output Eurozone China CRITERIA SCORE Deficient 0-1 Poor
2-4
Satisfactory
5-7
Good
8-9
Excellent 10

60. 7.0
THREE-MONTH LOW
Source: Markit

61. EUROZONE MANUFACTURING EXPANDS AT FASTEST PACE IN SIX YEARS
8.5
Source: Markit

62. EUROZONE ECONOMIC GROWTH AT SIX-YEAR HIGH IN APRIL
8.5
Source: Markit

63. 7.0
DOWN FROM 10.2% Y/Y
Source: Eurostat

64. 7.0
DECENT
Source: Eurostat

65. GENERALLY GOOD PICTURE
8.0
GENERALLY GOOD PICTURE
Source:

66. 6.5
ROLLING OVER
Growth in both manufacturing and services decelerated in April, reflecting a clear slowdown in the expansion of the Chinese economy.

67. 0.250
0.200
U.S. Macro
Last
New

68. DAVID’S CORNER

69. ADVISOR INPUTS

70. QUESTIONS & COMMENTS
THANKS FOR JOINING US!

71. IMPORTANT DISCLOSURE INFORMATION
Content is intended for investment professional use/review only. Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by BigFoot Investments.com), or any non-investment related content, made reference to directly or indirectly in this presentation will be profitable, equal any corresponding indicated historical performance level(s), be suitable for any investment professional’s clients portfolio or individual situation, or prove successful. The investment professional retains all decision making authority as to whether or not to follow and/or implement any of the presentation content. BigFoot has absolutely no responsibly for any suitability determination pertaining to any of the investment professional’s clients, such obligation being exclusively the initial and ongoing responsibility of the investment professional. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this presentation serves as the receipt of, or as a substitute for, personalized investment advice from BigFoot Investments.com. BigFoot Investments.com. is neither a law firm nor a certified public accounting firm and no portion of the content should be construed as legal or accounting advice. Investment Professional acknowledges that to the extent required to do so, it is his/her/its exclusively responsibility to advise his/her/its employer/broker-dealer of its BigFoot subscription. BigFoot Investments.com is a service of Lee Johnson Capital Management, an SEC registered investment adviser located in Fort Worth, Texas. A copy of the Lee Johnson Capital Management LLC’ current written disclosure statement discussing our advisory services and fees is available for review upon request.
No Sharing of Content: You acknowledge that the presentation content is for investment professional use only. You warrant and represent not to share any portion of the presentation content with any non-subscriber, including but not limited to your clients or prospects

72. WHAT WE WOULD BUY AT THIS LEVEL
REASON
STRATEGY THOUGHTS