D&D Note (2.8.2018) ~ Lows Retested as Deleveraging Continues ~

D&D Note (2.8.2018) ~ Lows Retested as Deleveraging Continues ~

The markets looked to retest the lows from Tuesday to form the right side of a W pattern. The DOW almost hit its key level of 23,778 while the S&P broke through its key level of 2,593. We must now watch the futures market to see if we rebound up or if we now try to test the 200 day moving average.

At the end of the day this is a correction, and one that was very overdue and is healthy. Keep in mind we had a short volatility trade blow up as the VIX spiked so traders are having to deleverage as a result. The big question is has that deleveraging finished.

D&D saw only one of our positions end up on the day the India stock WNS. Overall we like companies that have good earnings, good balance sheets, and good cash flow. A company that matches these qualities for example is Boeing.

In after hours trading NVIDIA beat on its earnings and that stock is now up 6%.

Stay diversified, stay calm, don’t panic, don’t diverge from your strategy.

D&D movers:

– WNS up 0.44%

– UNLRY (unch)

– IMLFF down -7.32%

– EMHTF down -5.22%

– NVDA down -4.93%

Indexes

– DOW down -2.81%

– NASDAQ down -3.90%

– S&P down -3.75%

Sector Movers:

– No sector finished up on session

– Financials down -4.51%

– Technology down -4.22%

– Consumer Discretionary down -4.02%

Notes

– US 2-YR 2.118% (down -0.016)

– US 10-YR 2.835 (up 0.003)

– US 30-YR 3.133% (up 0.018)

Volatility

– VIX 35.62 (up 28.45%)

Crypto (1:00 PST)

– BTC $8,286.17

– ETH $803.00

– BCH $1,302.01

– LTC $146.65

Metals

– Gold $1,320.40 (up 0.44%)

– Silver $16.345 (up 0.66%)

– Copper $3.0725 (down -0.49%)

Energy

– Oil $60.39 (down -2.27%)

– Brent $64.24 (down -1.94%)

– Nat Gas $2.692 (down -0.37%)