D&D Note (2.7.2018) ~ Searching For a Bottom ~

D&D Note (2.7.2018) ~ Searching For a Bottom ~

The markets still remain volatile as they search for a bottom in equity prices. The Gov auction today was week and the 10YR moved back up to 2.845% which put downward pressure on the rally today causing markets to end lower on the day.

Before we can resume going higher markets need to confirm a bottom. While hitting the lows from the futures market Tuesday morning might not happen look for us to get close to retesting that to form a double bottom.

Be careful and mindful of what you own. If you don’t understand the asset then why are you owning it? Case in point these extremely leveraged ETF’s and ETN’s. If it seems to good to be true it probably is.

Crypto might have found its bottom but also remains volatile. A note out from Goldman Sachs compared crypto to the 200 tech bubble where most coins will actually go to zero and only a few will remain.

Pot Stocks started off the day with huge gains but gave them back throughout the session to end lower. However, IMLFF did hold its gains and was D&D’s largest percentage gainer on the day finishing up 4.54%. EMHTF was our worse performer percentage wise on the day finishing down -5.99%. Again these are high beta stocks so don’t get caught up in the day to day movements and look at the longer term picture.

Mitch McConnell told leaders in the Senate today they have reached a a deal for the Gov budget.

D&D movers:

– IMLFF up 4.54%

– BA up 2.11%

– NVDA up 1.43%

– EMHTF down -5.99%

– TEMJF down -4.35%

– TSM down -3.92%

Indexes

– DOW down -0.08%

– NASDAQ down -0.90%

– S&P down -0.50%

Sector Movers:

– Telecom up 0.30%

– Industrials up 0.27%

– Financials up 0.16%

– Energy down -1.67%

– Technology down -1.37%

– Materials down -0.86%

Notes

– US 2-YR 2.138% (up 0.045)

– US 10-YR 2.845 (up 0.079)

– US 30-YR 3.117% (up 0.074)

Volatility

– VIX 23.62 (down -21.21%)

Crypto (1:00 PST)

– BTC $8,174.18

– ETH $823.40

– BCH $1,010.66

– LTC $149.74

Metals

– Gold $1,318.10 (down -0.85%)

– Silver $16.305 (down -1.66%)

– Copper $3.0945 (down -2.96%)

Energy

– Oil $61.75 (down -2.59%)

– Brent $65.52 (down -2.00%)

– Nat Gas $2.698 (down -2.21%)