D&D Note (3.22.2018) ~ China Trade War Tariffs Leads to Market Selloff ~
The Trump administration today announced up to $60 Billion in Tariffs against China, details still to come but include a 30 day comment period. Industries that could be targeted include; information technology, automated machine tools and robotics, aerospace and aeronautics equipment, maritime equipment and high-tech shipping, new-energy vehicles equipment, modern rail transport equipment, agricultural equipment, new materials, biopharma and advanced medical products.
China retaliation tariffs could include; Aircraft (Boeing), Industrials (Caterpillar, Deere), Consumer Goods (Harley Davidson, Levi’s), Agriculture (Soy Beans, Monsanto, ADM).
The 10YR yield plunged the most in 6 months falling briefly intraday below 2.8%, causing financials to selloff. The VIX spiked to 23.26 up 30% on the heightened volatility.
Markets sold off although on moderate volume meaning there wasn’t extreme selling pressure more so lack of buyers. The DOW falling -724 points (-2.93%), the S&P 500 falling -2.52%, and the NASDAQ falling -2.43% (and there was higher than normal volume today on the QQQ).
Dropbox to IPO tomorrow under symbol DBX on the NASDAQ. The IPO was oversubscribed allowing Dropbox to increase the IPO price range to $18 to $20 with a suggested valuation of $7.85B.
In a surprising event John Dowd quits as Trumps lead law council in Mueller Russia probe.
Today D&D did some strategic buying to rebalance our portfolio based on the unfolding macro economic events. We increased positions in: C, RDS.A, WNS, AAPL, FB, BRK.B, PKG, BAC, IMLFF.
The portfolio got back into MU after closing the position last December.
D&D movers:
– MO up 0.65%
– UNLRY (UNCH)
– TCEHY down -10.70%
– IMLFF down -8.58%
– EMHTF down -7.64%
– BABA down -5.45%
– BA down -5.19%
Indexes
– DOW down -2.93% (-724.42 points)
– NASDAQ down -2.43%
– S&P down -2.52%
Sector Movers:
– Utilities up 0.44%
– Financials down -3.70%
– Industrials down -3.28%
– Materials down -2.97%
Notes
– US 2-YR 2.83% (down -0.033)
– US 10-YR 2.828% (up 0.079)
– US 30-YR 3.063% (down -0.066)
Volatility
– VIX 23.26 (up 30.24%)
Crypto (1:00 PST)
– BTC $8,603.94
– ETH $532.39
– BCH $995.43
– LTC $160.65
Metals
– Gold $1,328.60 up 0.54%
– Silver $16.38 down -0.24%
– Copper $3.024 down -1.13%
Energy
– Oil $64.24 down -1.43%
– Brent $68.88 down -0.85%
– Nat Gas $2.612 down -0.99%
D&D Investments 
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