D&D Note (4.20.2018) ~ Apple + Yields + Friday = Selloff ~
Once again for 4th time markets have not been able to avoid a Friday selloff with investors unwilling to go long into the weekend. The main themes of the day were Apple falling with iPhone concerns dragging down the DOW, and yields from 2 to 30 year notes all rising today sharply with the 10YR hitting the high of the year of 2.96%.
Put that all together and you get a Friday selloff.
The only sector barely positive on the day at 0.05% were the Financials due to the spike in Treasury Yields. If the financials can continue to lead as rates go up it would be a positive sign for the market allowing it to continue up as we cross the 3% 10YR yield threshold into the new trading range of 3% to 3.5%.
Sectors that fell the most day included Consumer Staples down -1.69% and Technology falling -1.51%.
Today is 420 the global cannabis celebration day and has definitely now become mainstream as even the business news channels were live in San Francisco at Hippie Hill. There has been a slew of positive news for the cannabis industry just this week from Capital Hill to life saving CBD drugs being approved.
With these tailwinds D&D entered into a new Pot Stock position in MedReLeaf Corp (MEDFF). The company focuses not on the recreational side but the medical side. From all of D&D’s research we believe CBD could become one of the largest pharmaceutical markets. This is also why we have a position InMed Pharmaceuticals Inc (IMLFF) which focuses on using algorithms to breakdown all the many chemicals in cannabis and align them with diseases that can be treated by them. These both are long term plays and not just for a short turnaround, these are names to own not trade.
In light of the big chip selloff sparked by Taiwan Semi the portfolio added to our holding in TSM to re-weight it in our holdings list. Yesterday was the largest one day decline in years and TSM is simply a must own company to capture global growth through technology advances. Getting the stock on sale is always a welcome buy for D&D.
D&D movers:
– HON up 1.65%
– CNTTF up 1.45%
– WNS up 0.36%
– BAC up 0.27%
– APHQF down -4.44%
– AAPL down -4.10%
– TSLA down -3.28%
– IMLFF down -2.43%
Indexes
– DOW down -0.82%
– NASDAQ down -1.27%
– S&P down -0.85%
Sector Movers:
– Financials up 0.05%
– Consumer Staples down -1.69%
– Technology down -1.51%
– Consumer Discretionary down -1.02%
Notes
– US 2-YR 2.461% (up 0.025)
– US 10-YR 2.96% (up 0.046)
– US 30-YR 3.145% (up 0.04)
Volatility
– VIX 17.10 (up 7.14%)
Crypto (1:00 PST)
– BTC $8,530.00
– ETH $593.23
– BCH $1,129.77
– LTC $152.77
Metals
– Gold $1,337.80 down -0.82%
– Silver $17.13 down -0.63%
– Copper $3.132 UNCH 0%
Energy
– Oil $68.13 down -0.29%
– Brent $73.73 down -0.07%
– Nat Gas $2.743 up 3.12%
D&D Investments 
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