D&D Note (3.19.2018) ~ Social Media Regulation Concerns Sends Facebook Into Selloff ~
Today Facebook fell the most since 2012 over concerns of data breach. At the close its hovering right at the 200 day moving average. If the stock falls further into RSI oversold territory in the coming sessions D&D will look to add back to the position which we took profits earlier in at all time highs. The company in question of the data breach is Cambridge Analytica which is the ad company that helped then candidate Donald Trump. Cambridge got Facebook user data through an app developer which violated FB policies. They harvested private information from profiles of more than 50 million users without permission according to the New York Times.
This news sent fears through the market of social media regulation, specifically from the EU. All the FANG stocks fell on the day.
Facebook down -6.77%
Amazon down -1.70%
Netflix down -1.48%
Google down -3.16%
Tweets over the weekend from the POTUS regarding special council Mueller also put downward pressure on the overall market sending just about everything falling on the session. The fear is we could see another Saturday Night Massacre style firing of Robert Mueller which would essentially mark the end of the current administration as it did with the Nixon administration.
The VIX spiked over 20 on the session but came down at the close to settle at 19.69.
Crypto gained a bid today but the blockchain sector remains in trouble as regulation fears, Mt Gox selling, and bubble popping all hang over the asset class.
In what has become a trend Pot Stocks are acting as defensive stocks. Today the group was in the green on a tough tape overall for the market. Big gainers included TWMJF up 5.35% and IMLFF up 5.42%.
Today D&D sold some of our EMHTF position to boost our overall cash reserves. We are still looking to take profits in APHQF just at a bit higher price. Once we take that profit then cash will move from our current 2nd largest holding to our largest overall holding by weight.
Markets still need to see leadership. When FANG falters we would like to see financials fill the void but today we saw few bidders in the market for any sector.
On our watchlist remains several of current holdings which we are looking to add to on weakness. The materials sector via PKG. The financial sector via JPM, C, BAC, BRK.B. Traditional media via DIS. International stocks WNS of India, SIEGY of Germany. And we continue to watch BA which has been under trade war fears, right now we still have not seen a big enough pullback to entice buying.
We are also watching the energy sector via natural gas through Golar LNG (GLNG).
D&D movers:
– IMLFF up 5.42%
– TWMJF up 5.35%
– EMHTF up 2.02%
– APHQF up 1.71%
– FB down -6.77%
– NVDA down -3.78%
– GOOG down -3.16%
– BABA down -2.87%
Indexes
– DOW down -1.34%
– NASDAQ down -1.84%
– S&P down -1.42%
Sector Movers:
– No sector finished higher on the session
– Technology down -2.11%
– Health down -1.70%
– Energy down -1.69%
Notes
– US 2-YR 2.307% (up 0.012)
– US 10-YR 2.855% (up 0.007)
– US 30-YR 3.091% (up 0.01)
Volatility
– VIX 19.66 (up 24.43%)
Crypto (1:00 PST)
– BTC $8,383.99
– ETH $535.07
– BCH $959.31
– LTC $156.70
Metals
– Gold $1,316.60 up 0.33%
– Silver $16.32 up 0.29%
– Copper $3.078 down -0.95%
Energy
– Oil $62.19 down -0.24%
– Brent $66.19 down -0.03%
– Nat Gas $2.658 down -1.12%
D&D Investments 
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