D&D Note (1.29.2018) ~ Bond Yields Pushing Higher ~

D&D Note (1.29.2018) ~ Bond Yields Pushing Higher ~

Markets fell on the day as pressure from rising bond yields continues sending stocks lower. The 10YR is on a very quick pace up and today rose to 2.72% intraday. Utilities have seen a death cross where the 50 day moving average crosses below the 200 day moving average. The former ceiling has now become the floor in 2.63%. Investors must keep an eye on the increasing yield and be ready to take profits when the 10YR approaches 3%. Beware the ides of march?

AMZN got a price target boost by an analyst to $1,600. The stock rose on the day 1.11% to $1,417.68 per share.

AAPL continues to fall, down -2.07% on the day. Questions over the iPhone X production remains a major headwind on the stock. Options on the equity remain bullish with calls being bought at $170 a share.

Pot Stocks fell today but closed above the technical retracement levels from the previous gap up. If you are not in these stocks use these pullbacks for entry points or to add to positions. Canada goes fully legal in July so think of now till then as your runway for price appreciation. Despite the volatility D&D remains to be overweight in the Pot stocks.

Where bitcoin trades is still mixed with headlines coming out saying it could triple by year’s end according to Bespoke while Peter Boockvar says it could lose 90% of its value. Crypto is still a speculative asset and an investor should not allocate more than 5% of their total portfolio to the asset.

Be sure to stay diversified with your portfolio. Today D&D added to our BAC position to increase our financial sector exposure, while we also added to our EMHTF and IMLFF holdings to increase our Beta exposure in the Pot Sector.

Emerging Markets continue to look juicy and its wise to have EM within your portfolio this year. D&D holds the following EM positions; UNLRY, WNS, TTM, BABA, TCEHY, TSM.

International Developed Markets are also a must this year. D&D holds the following; SIEGY, TWMJF, IMLFF, CNTTF, EMHTF, APHQF.

Our domestic holdings include; PHM, AAPL, HON, FB, MO, PYPL, ITW, STZ, BA, BRK/B, DIS, UNH, C, GOOG, JPM, BAC, AMZN, NVDA, NFLX.

D&D movers:

– NFLX up 3.64%

– NVDA up 1.45%

– AMZN up 1.11%

– EMHTF down -6.57%

– IMLFF down -6.42%

– CNTTF down -6.29%

Indexes

– DOW down -0.25%

– NASDAQ down -0.52%

– S&P down -0.68%

Sector Movers:

– No sectors finished up on the session

– Energy down -1.55%

– Telecom down -1.29%

– Utilities down -1.28%

Notes

– US 2-YR 2.12% (UNCH)

– US 10-YR 2.694% (up 0.032)

– US 30-YR 2.941% (up 0.0028)

Volatility

– VIX 13.62 (up 22.92%)

Crypto (1:00 PST)

– BTC $11,137.00

– ETH $1,156.00

– BCH $1,637.36

– LTC $178.94

Metals

– Gold $1,340.50 (down -0.86%)

– Silver $17.16 (down -1.61%)

– Copper $3.1955 (down -0.11%)

Energy

– Oil $65.46 (down -1.03%)

– Brent $69.37 (down -1.63%)

– Nat Gas $3.631 (up 3.59%)