D&D Note (5.11.2018) ~ DOW Stages 7th Straight Day of Gains ~
Markets continue to be in a time correction opposed to a sharp V price correction. Both the DOW and S&P 500 are now above their 50 day moving averages which suggests a technical breakout. However on overbought RSI basis we should see a near term reversion to the mean before trying to breakout again.
The DOW has staged a 7 day rally gaining some 1200 points. We’ve now closed two Fridays in a row in the green.
Trade wars, tariffs, and a middle east conflict all still remain major potential geopolitical headwinds.
Tax cuts, earnings, and low inflation all remain tailwinds for the market.
In a speech today the POTUS outlined plans to lower drug prices including possibly requiring listed prices in commercials and ads.
Oil falls 1% but still holds above $70.
After IMLFF had a huge bounce of 35% off the 200 day moving average we have seen a normal reversion to the mean back towards the 200 day. D&D added more to our position today.
Much like the DOW and S&P 500, IMLFF is flirting with technical levels in a wedge pattern. The good news is the flirtations have all been to a breakout to the upside.
Here is the 3 month chart for IMLFF:
Here is the S&P 500 ETF SPY on a YTD chart:
D&D movers:
– MEDFF up 7.60%
– CNTTF up 6.06%
– APHQF up 2.86%
– UNH up 1.96%
– IMLFF down -7.14%
– NVDA down -2.15%
– MO down -1.52%
– TSLA down -1.30%
Indexes
– DOW up 0.37%
– NASDAQ down -0.03%
– S&P up 0.17%
Sector Movers:
– Telecom up 2.10%
– Health up 1.47%
– Consumer Discretionary up 0.23%
– Real Estate down -0.49%
– Technology down -0.32%
– Consumer Staples down -0.11%
Notes
– US 2-YR 2.539% (up 0.001)
– US 10-YR 2.97% (down -0.001)
– US 30-YR 3.102% (down -0.019)
Volatility
– VIX 12.79 (down -3.33%)
Crypto (1:00 PST)
– BTC $8,609.68
– ETH $689.33
– BCH $1,401.61
– LTC $140.19
Metals
– Gold $1,319.50 down -0.21%
– Silver $16.705 down -0.32%
– Copper $3.1095 down -0.02%
D&D Investments 
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