D&D Note (2.21.2018) ~ FED Minutes Rally Fades Into Close ~

D&D Note (2.21.2018) ~ FED Minutes Rally Fades Into Close ~

The stock market was on a rally today and pushed higher immediately following the release of the FED Minutes. However about 20 minutes later investors began reading between the lines of the dovish statement and found reason to be hawkish and the market sold off and finished in the red.

The word “further” in the statement has lead investors to think seriously about 4 rate hikes this year opposed to the already priced in 3 hikes.

The rise in real rates also put downward pressure on equities. The 10YR is within touching distance of 3% and once we can close above 3.04% the note will move into a new trading range up to 3.5%. Many believe we still need to try and retest the 200 day moving average again in equities before we can have a sustainable rally.

Poor results from Walmart sent shares tumbling while the beneficiary of their demise is Amazon which hit $1,500 a share intraday.

D&D movers:

– WNS up 1.18%

– TCEHY up 1.10%

– FB up 1.08%

– AMZN up 0.99%

– IMLFF down -10.61%

– EMHTF down -7.39%

– APHQF down -3.89%

– TWMJF down -3.53%

Indexes

– DOW down -0.67%

– NASDAQ down -0.22%

– S&P down -0.55%

Sector Movers:

– No sector finished up on day

– Real Estate down -1.81%

– Telecom down -1.64%

– Energy down -1.66%

Notes

– US 2-YR 2.266% (down -0.004)

– US 10-YR 2.943% (up 0.002)

– US 30-YR 3.212% (down -0.009)

Volatility

– VIX 20.14 (down -2.82%)

Crypto (1:00 PST)

– BTC $10,366.32

– ETH $827.47

– BCH $1,305.03

– LTC $208.81

Metals

– Gold $1,327.10 down -0.38%

– Silver $16.465 down -0.91%

– Copper $3.196 down -0.62%

Energy

– Oil $61.14 down -0.88%

– Brent $65.42 UNCH

– Nat Gas $2.651 down -0.30%