D&D Note (1.26.2018) ~ America Is Open For Business ~

D&D Note (1.26.2018) ~ America Is Open For Business ~

Today the POTUS delivered what was actually a pretty good speech in Davos. The key themes are America is open for business and that while the President looks at America first its not America alone. He also talked up a strong dollar to clarify comments from Treasury Secretary earlier in the week.

Markets all marched higher to record highs again with a broad based rally with Utilities being the lone drag due to interest rates still climbing. The Utility stocks have high dividend yields and are seen as bond proxies. When rates climb the need to buy a proxy fades and bond yields become more attractive. At the current velocity the 10YR could hit 3% in March, although that pace is unlikely to sustain.

So far its been the best start of a year for the markets since 1987 (thats also of course the year we saw Black Monday with the largest one day stock crash).

In the roller coaster of Pot stocks we rode back up today erasing yesterdays declines. The market does not give you long to sell the highs or buy the lows. Yesterday was indeed a good time to get your toes in the water. All the equities D&D holds broke out and closed well above technical levels.

Big news of the day was sexual misconduct allegations of Steve Wynn. Its hard to see how the Vegas titan can recover from this. Now the question is can the company which has his signature as the logo survive without Steve at the helm.

D&D movers:

– TWMJF up 10.97%

– IMLFF up 10.18%

– APHQF up 5.69%

– EMHTF up 3.47%

– SIEGY down -0.53%

– WNS down -0.31%

Indexes

– DOW up 0.72%

– NASDAQ up 1.28%

– S&P up 1.17%

Sector Movers:

– Health up 2.15%

– Technology up 1.64%

– Industrials up 1.11%

No Sectors finished lower on the day

– Utilities up 0.06% after being down most of the session

Notes

– US 2-YR 2.12% (up 0.036)

– US 10-YR 2.658% (up 0.037)

– US 30-YR 2.909% (up 0.0029)

Volatility

– VIX 11.19 (down -3.37%)

Crypto (1:00 PST)

– BTC $10,965.01

– ETH $1,039.28

– BCH $1,569.59

– LTC $174.83

Metals

– Gold $1,3498.60 (down -1.05%)

– Silver $17.385 (down -1.31%)

– Copper $3.1985 (down -0.56%)

Energy

– Oil $65.14 (up 0.96%)

– Brent $70.42 (UNCH)

– Nat Gas $3.522 (up 2.18%)