D&D Note (2.1.2018) ~ HODL Volatility Awakens ~

D&D Note (2.1.2018) ~ HODL Volatility Awakens ~

Wild swings today again across markets with volatility returning to daily trading. The DOW alone saw a swing of 290+ points during the session. Pot Stocks due to their high beta have moved more than the major indexes and are clearly shaking out the loose hands. If you are new to trading the Pot Stocks all I can say is HODL as this has always been a roller coaster with these equities much like with the blockchain coins. Crypto plunges with Bitcoin falling below $9,000 and Ethereum fell below $1,000. Treasurys saw yields climb with the 30YR breaking 3% and the 10YR closing in on 2.8%.

This market has many comparisons to 1987. There was a lot of volatility that year with 5% pullback then 5% gain, then 5% pullback then 5% gain, etc., before then zooming up parabolic then Black Monday happened with the largest one day drop. If you are comparing we would be in that volatile stage leading up to a parabolic run up… before collapsing.

Facebook saw a volatile after-hours session last night during the earnings call. First dropping substantially before then zooming up. Today the social network rose 3.32%.

Paypal got whacked last night after earnings when the simultaneous call of eBay announce they were dropping Paypal. PYPL fell 8.11% today.

Huge earnings tonight with the triple A’s all reporting. Amazon, Apple, and Alphabet (parent company of Google) are releasing earnings after the closing bell. And the guide of where the overall market goes tomorrow depend heavily on these 3 companies as together these are the worlds largest companies all vying to be the first with a $1Trillion market cap.

So far into the earnings calls in after-hours; Amazon beat and is up 3%, Google missed is down 4%, Apple beats but guides down and is down 1%.

Aphria broke its 50 day moving average today but does have support at $12 and closed just above the 50 day moving average. After bouncing off the $12 resistance line D&D added to our position today.

We also added to beaten down UNH today. Near term support has developed after falling due to the Amazon effect.

To raise cash D&D closed out a few positions including; STZ, PHM, TTM, and NFLX.

Investors must remain patient and allow the bid to ask to fall into their price target. Buy in pyramid style to position your cost basis. For example if you are looking to buy $2,000 of a single stock then buy in stages (the pyramid) with $500, then wait to see market action, then buy another $500 and wait, then when you have conviction of price stabilization buy $1,000. The reverse is true for selling and you just reverse the pyramid stages.

Volatility while creating whipsaw nauseating action, is a dream for traders who can find intraday price fluctuation for both buying and selling.

D&D movers:

– FB up 3.32%

– DIS up 1.67%

– BAC up 1.56%

– APHQF down -11.61%

– TWMJF down -10.92%

– IMLFF down -9.26%

Indexes

– DOW down -0.07%

– NASDAQ down -0.35%

– S&P down -0.07%

Sector Movers:

– Telecom up 2.48%

– Energy up 1.10%

– Financials up 0.99%

– Real Estate down -1.86%

– Utilities down -1.58%

– Materials down -1.38%

Notes

– US 2-YR 2.157% (up 0.012)

– US 10-YR 2.78% (up 0.06)

– US 30-YR 3.017% (up 0.075)

Volatility

– VIX 13.38 (down -1.18%)

Crypto (1:00 PST)

– BTC $9,098.97

– ETH $1,011.06

– BCH $1,268.48

– LTC $143.90

Metals

– Gold $1,353.60 (up 0.78%)

– Silver $17.225 (down -0.09%)

– Copper $3.219 (up 0.74%)

Energy

– Oil $66.10 (up 2.12%)

– Brent $69.88 (up 1.44%)

– Nat Gas $2.875 (down -4.01%)