D&D Note (4.13.2018) ~ Geopolitical Risks Outweigh Earnings Beat ~
The overhang of continued geopolitical risk outweighed the earnings beat by the banks that reported today. Investors simply did not want to go into the weekend long with the threat of a tweet derailing the macro environment.
Three of the major banks reported today (C, JPM, and WFC) and all beat on top and bottom line numbers. Despite the good earnings the price action was weak with all three stocks 1-3%.
While stellar earnings are baked into the cake, D&D does not see today as the beginning of a trend of selling on earnings beats going forward into earnings season.
More so, its a case of being a Friday and often investors don’t like being long into weekends. Especially when there are so many potential risks out there in the near term of Syria, Saudi Arabia, Iran, Israel, China, Russia, North Korea, Venezuela, and of course the USA and potential administration firings.
D&D continues to sit on our hands but staying long as events unfold and data comes in. Pot Stocks took off today helping our portfolio buck the overall market trend and finish up 1.32% on the session. This movement will likely continue to rise next week. A slew of companies will be reporting earnings next week. And we should have a better idea of the geopolitical risks come Monday.
Crypto has continued to rally with Bitcoin now over $8,000 and Ethereum over $500.
We might just be getting pretty, pretty, pretty close to a 2018 stock market bottom. The low volume and lower VIX that we have seen during the recent retesting of the lows is a usual sign of a bottom forming.
D&D movers:
– APHQF up 14.76%
– CNTTF up 7.87%
– TWMJF up 7.28%
– IMLFF up 5.85%
– TCEHY down -3.15%
– BAC down -2.77%
– TSM down -2.74%
– JPM down -2.71%
Indexes
– DOW down -0.50%
– NASDAQ down -0.47%
– S&P down -0.29%
Sector Movers:
– Energy up 1.09%
– Utilities up 0.69%
– Real Estate up 0.52%
– Financials down -1.55%
– Consumer Discretionary down -0.57%
– Technology down -0.33%
Notes
– US 2-YR 2.361% (up 0.013)
– US 10-YR 2.823% (down -0.011)
– US 30-YR 3.027% (down -0.013)
Volatility
– VIX 17.60 (down -4.81%)
Crypto (1:00 PST)
– BTC $8,095.00
– ETH $510.12
– BCH $765.77
– LTC $130.75
Metals
– Gold $1,347.50 up 0.42%
– Silver $16.635 up 0.98%
– Copper $3.0655 up 0.07%
Energy
– Oil $67.25 up 0.27%
– Brent $72.44 up 0.58%
– Nat Gas $2.737 up 1.90%
D&D Investments 
Discussion
No comments yet.