D&D Note (1.23.2018) ~ Trade War?

D&D Note (1.23.2018) ~ Trade War?

Solar panels and washing machines tariffs have been announced by the Trump administration. While that might seem not very important when you break that down its actually the start of a trade war with Asia and specifically China. The consequences could heat up if China decides to respond with their own tariffs. Don’t forget The Peoples Republic also holds trillions in US debt.

Bond Yields fell today after the government reopened (temporarily till Feb 8th). The 10YR fell below the key level of 2.63 and is now at 2.615.

Earnings look to remain the driving catalyst for the markets, which is a good fundamental thing supporting these lofty valuations. Netflix hit the ball out the park on sub numbers including rising US numbers causing the stock to jump 10% in trading today.

In the ongoing search for alpha, D&D added a new position today with InMed Pharmaceuticals IMLFF. The Canadian based company focuses on the medical benefits of cannabinoid such as; Epidermolysis Bullosa (EB) and Glaucoma. Their R&D is currently working on treatments for multiple diseases, of which include ocular, dermatology, cancer, inflammation pain, and arthritis disease areas. The company also has a solid balance sheet which is always a deciding factor in our stock selection.

In politics it was confirmed that AG Sessions did talk to the special counsel in regards to the Russia probe. Trump says that he is not worried, “at all,” about the AG.

While markets are on a tear right now don’t get caught being too greedy. Remember that Bulls make money, Bears make money, Pigs get slaughtered. A profit is not a profit until its realized and you cash the register.

D&D movers:

– EMHTF up 11.01%

– NFLX up 9.98%

– CNTTF up 4.49%

– IMLFF down -5.69%

– TWMJF down -1.86%

– APHQF down -1.85%

Indexes

– DOW up 0.04%

– NASDAQ up 0.71%

– S&P up 0.22%

Sector Movers:

– Real Estate up 1.47%

– Utilities up 0.96%

– Consumer Discretionary up 0.86%

– Telecom down -1.16%

– Health down -0.52%

– Consumer Staples down -0.30%

Notes

– US 2-YR 2.04% (down -0.033)

– US 10-YR 2.615% (down -0.048)

– US 30-YR 2.894% (down -0.033)

Volatility

– VIX 11.09 (up 0.54%)

Crypto (1:00 PST)

– BTC $11,100.99

– ETH $997.63

– BCH $1,656.25

– LTC $181.02

Metals

– Gold $1,340.80 (up 0.67%)

– Silver $17.035 (up 0.27%)

– Copper $3.1195 (down -2.47%)

Energy

– Oil $64.75 (up 1.86%)

– Brent $70.15 (up 1.62%)

– Nat Gas $3.548 (up 10.05%)