D&D Note (1.24.2018) ~ Davos Most Upbeat Since 2006 ~

D&D Note (1.24.2018) ~ Davos Most Upbeat Since 2006 ~

The mood around the international economic conference held yearly in Davos Switzerland is the most upbeat since 2006. Thats a telling sign of what the most wealthiest people in the world think about the current state of the global economy.

The market as whole saw some volatility today from the dollar to equities where there was a reversal and then a re-reversal.

Pot stocks as usual keep riding the dollar coaster of gains and losses. Today was a down day for the basket but D&D sees this as another buying point to add to positions and adjust the cost basis for holdings. Overall pot stocks have high Beta so move more than the market as a whole. On good days gains are oversized but the same can be said on down days.

The two largest holdings in our portfolio are APHQF and TWMJF. While these stocks also represent the largest overall gains for us, today they represented 50% of the portfolio’s daily $ loss causing D&D to see its 2nd down day of 2018 (the other being on the AG Sessions note). However both charts held key near term levels and presented a buying opportunity with both stocks closing well off their lows. Another 25% of todays $ decline came from EMHTF which we also added to on the day. IMLFF also had its position added to doubling the holding.

Technology also weighed on the markets with AAPL, NVDA, FB, TCEHY all down over 1% on the day. Another drag was TSM down over 2% and chip stocks overall on the news Qualcomm is getting fined.

The 10YR yield advanced again to 2.65 don’t be surprised to see trading over the coming days to hover around that key level of 2.63 on the daily news events.

GE continues to be a classic falling knife stock, tread extremely careful on this company if not steer completely clear of it. Once the company gets broken up some of the individual pieces could then be worth scooping up.

D&D movers:

– NFLX up 4.39%

– BABA up 1.69%

– JPM up 1.28%

– EMHTF down -11.15%

– IMLFF down -7.33%

– TWMJF down -3.93%

Indexes

– DOW up 0.20%

– NASDAQ down -0.61%

– S&P down -0.06%

Sector Movers:

– Telecom up 0.66%

– Financials up 0.68%

– Consumer Discretionary up 0.41%

– Technology down -0.91%

– Utilities down -0.58%

– Real Estate down -0.32%

Notes

– US 2-YR 2.08% (up 0.021)

– US 10-YR 2.647% (up 0.025)

– US 30-YR 2.927% (up 0.025)

Volatility

– VIX 11.33 (up 2.07%)

Crypto (1:00 PST)

– BTC $11,125.00

– ETH $1,029.39

– BCH $1,629.97

– LTC $180.31

Metals

– Gold $1,357.30 (up 1.54%)

– Silver $17.57 (up 3.88%)

– Copper $3.2305 (up 3.84%)

Energy

– Oil $65.96 (up 2.31%)

– Brent $70.85 (up 1.27%)

– Nat Gas $3.433 (down -0.35%)