D&D Note (2.2.2018) ~ Good News is Bad News, DOW Falls 666 points ~
The good job number and rise in wages has caused investors to worry the FED is behind the curve and will accelerate their rate hikes. That caused the 10YR to spike today and Equities to follow in parallel inverse. Once the FBI memo got released that caused the buyers to sit on their hands and wait to see what happens over the weekend. Most likely we’ll see a further plunge on the open Monday and then see stock pickers nibble on the buy side.
Watch the 50 day moving average to see where we find a bottom, thats around 1700 on the S&P 500. Falling 5% to 7% from the recent record highs is not unusual and is a healthy correction for the market to continue marching higher. It just feels like a lot of pain while it happens minute by minute.
The next resistance level on the 10YR yield is 3.04% which if we break through that then look out. The current trading range we have moved into is between 2.63% and 3.04%.
The VIX surged 29.40% today to 17.43. Usually when it hits around 20 signals panic selling. Most likely we’ll see that on Monday or Tuesday.
D&D nibbled on the 2 worse performers of our portfolio today in EMHTF and IMLFF. On our shopping list for Monday are; APHQF, SIEGY, TSM, BAC. Depending on price action we also will be looking at; CNTTF, BA, JPM, UNH.
D&D movers:
– AMZN up 2.95%
– UNLRY (unch)
– EMHTF down -16.42%
– IMLFF down -14.52%
– TWMJF down -13.59%
Indexes
– DOW down -2.54%
– NASDAQ down -1.96%
– S&P down -2.12%
Sector Movers:
– No Sectors finished higher on the day
– Energy down -4.13%
– Technology down -2.96%
– Materials down -2.60%
Notes
– US 2-YR 2.145% (down -0.016)
– US 10-YR 2.835% (up 0.062)
– US 30-YR 3.078% (up 0.072)
Volatility
– VIX 17.43 (up 29.40%)
Crypto (1:00 PST)
– BTC $8,542.98
– ETH $890.02
– BCH $1,159.25
– LTC $126.30
Metals
– Gold $1,334.00 (down -1.03%)
– Silver $16.545 (down -3.56%%)
– Copper $3.1785 (down -0.95%)
Energy
– Oil $65.12 (down -1.03%)
– Brent $68.34 (down -1.88%)
– Nat Gas $2.864 (up 0.28%)
D&D Investments 
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