D&D Note (4.3.2018) ~ Markets Rally Off Technical Levels ~
Once again markets have bounced off the technical level of the 200 day moving average which was breached on the S&P 500 in Monday’s session. This could be a time correction where markets get stuck in a range between the 200 day and the 50% retracement to all time highs.
Here is a chart of the S&P 500 (credit CNBC) from yesterday showing the breach of the 200 day moving average:
The rally late in the afternoon coincided with a rally in Amazon. All indices finished higher than 1% on the day.
Copper broke above $3 which is bullish. The 10YR gradually moving back up in yield. The Energy sector lead the day. And the VIX traded back down nearer to 20.
Pot stocks in Canada might have capitulated on the negative news of a possible crop glut.
Valuations are more in line now after this decline. D&D is going to liquidate our position in Emerald as there appears too much time needed for their ramp up production in correlation to the headwind risk of a crop glut.
The portfolio is sticking with are positions in the larger names of TWMJF and APHQF along with our positions in IMLFF and CNTTF that focus on CBD. Aphria in particular looks to have been oversold and now undervalued, leading D&D to possibly add more back to our holding as we cut EMHTF.
Tesla announced they are still on pace for summer production targets and as of now will not need to raise cash. The stock rallied today 5.96% to $267.53 the largest percentage gainer on the day for the portfolio.
D&D movers:
– TSLA up 5.96%
– MO up 3.55%
– UNH up 3.40%
– MU up 2.98%
– TWMJF down -11.97%
– APHQF down -9.91%
– EMHTF down -8.70%
– CNTTF down -7.07%
Indexes
– DOW up 1.63%
– NASDAQ up 1.04%
– S&P up 1.26%
Sector Movers:
– Energy up 2.14%
– Health up 1.51%
– Materials up 1.44%
– No sector finished lower on the session
Notes
– US 2-YR 2.282% (up 0.036)
– US 10-YR 2.786% (up 0.054)
– US 30-YR 3.022% (up 0.052)
Volatility
– VIX 21.40 (down -9.40%)
Crypto (1:00 PST)
– BTC $7,452.01
– ETH $413.41
– BCH $709.81
– LTC $132.51
Metals
– Gold $1,334.70 down -0.91%
– Silver $16.375 down -1.78%
– Copper $3.065 up 0.49%
Energy
– Oil $63.55 up 0.86%
– Brent $68.16 up 0.77%
– Nat Gas $2.698 up 0.56%
D&D Investments 
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