D&D Note (3.28.2018) ~  Two Numbers Investors Must Know: 2560 and 2585 ~ #StockMarket #doublebottom #correction

D&D Note (3.28.2018) ~  Two Numbers Investors Must Know: 2560 and 2585 ~

Markets have done what is called a technical double bottom off of a correction. Can we go lower from here would be yes. Can we bounce from here and go higher would be yes. The key levels to watch on the S&P 500 are 2585 and 2560.

The level of 2585 is the ascending 200 day moving average. It was this technical level that we bounced off in February. If we break that level then 2560 is the next long term support level which we have to hold.

Right now the market is facing a wall of worry. This is good as bull markets can only climb a wall of worry. This also causes volatility. Which is why D&D adheres to our Triple P’s philosophy of being: Positioned, Prepared, and Patient.

It is in the view of D&D that this dip should be bought and used to reposition a portfolio to a rising interest rate macro environment.

Alpha becomes to outweigh Beta. AKA non sexy returns now will become luscious returns later.

Today we added to our speculative position in Tesla to readjust our cost basis. Will the stock fall further? Perhaps as it flirted with its 200 day moving average today. D&D is positioned to add to our new holding of TSLA if we see further weakness.

In the past when people have bet against Elon Musk and his ability to raise cash have been burned. After this oversold action we believe there has finally been a reasonable entry point into the future of car, battery, and solar technology.

We continue to HODL on our Ethereum position and our Canadian Pot Stocks. The rest of our portfolio has been repositioned to succeed in the future 2-3 year macro environment.

D&D movers:

– MO up 2.83%

– SIEGY up 0.63%

– FB up 0.53%

– BRK.B up 0.28%

– TSLA down -7.67%

– IMLFF down -7.26%

– CNTTF down -6.53%

– EMHTF down -6.45%

Indexes

– DOW down -0.04%

– NASDAQ down -0.85%

– S&P down -0.29%

Sector Movers:

– Real Estate up 1.77%

– Telecom up 1.65%

– Consumer Staples up 1.38%

– Energy down -1.99%

– Materials down -1.32%

– Consumer Discretionary down -1.24%

Notes

– US 2-YR 2.282% (up 0.004)

– US 10-YR 2.777% (down -0.011)

– US 30-YR 3.014% (down -0.017)

Volatility

– VIX 22.95 (up 2.00%)

Crypto (1:00 PST)

– BTC $7,906.01

– ETH $446.20

– BCH $854.01

– LTC $133.02

Metals

– Gold $1,329.10 down -1.39%

– Silver $16.26 down -1.70%

– Copper $2.997 down -0.12%

Energy

– Oil $64.65 down -0.92%

– Brent $69.78 down -0.47%

– Nat Gas $2.703 down -0.41%