D&D Note (5.18.2018) ~ S&P Flat on Week is Victory for Bulls ~ #StockMarket

D&D Note (5.18.2018) ~ S&P Flat on Week is Victory for Bulls ~

In the face of continued rising of the 10YR Yield the S&P 500 remained flat for the week. This is actually a big win for the bulls. Why? Because we are still holding the breakout of the downtrend and have not tried to retest the 200 day moving average again.

With the dollar still strengthening, small cap stocks have been the leaders. Oil continues to hold above $70. The 10YR Yield pulled back a bit but is still holding above the old resistance level of 3.03% with a yield currently of 3.063%.

In the world of Pot Stocks we saw a huge announcement that Canopy Growth is going to list on the New York Stock Exchange. This will open up new investors who previously did not or could not buy equities listed on the TSX in Canada.

Bitcoin and cryptocurrencies were supposed to see a lift from the recent conference being held. But instead we’ve seen further weakening. Many investors are now becoming less bullish on Bitcoin core and maintaining a HODL position on Bitcoin Cash and Ether. The coin XRP has been falling out of favor and investors have actually become bearish on the coin but bullish on Ripple the actual company.

Volatility continues to fall with the VIX now at 13.33. This is leading many options players to seek contracts for protection insurance while contract prices are low.

Consumer Staples equities remain in a downtrend as investors begin to favor buying bonds over the Staples sector for yield. In the wake up this D&D lightened up our position in MO and have repositioned the stock to our smallest holding after selling around half our position today.

Gold while rising today modestly remains below $1300 a Troy Ounce.

The Industrial sector was the largest gainer on the day with the help of Boeing rising 2.10%

D&D movers:

– MEDFF up 10.13%

– TWMJF up 8.29%

– APHQF up 2.73%

– BA up 2.10%

– TSLA down -2.71%

– C down -2.24%

– BAC down -1.79%

– JPM down -1.62%

Indexes

– DOW up 1.11 points to close UNCH

– NASDAQ down -0.38%

– S&P down -0.26%

Sector Movers:

– Industrials up 0.55%

– Health up 0.27%

– Materials up 0.14%

– Financials down -0.91%

– Energy down -0.81%

– Consumer Staples down -0.63%

Notes

– US 2-YR 2.553% (down -0.02)

– US 10-YR 3.063% (down -0.046)

– US 30-YR 3.201% (down -0.045)

Volatility

– VIX 13.36 (down -0.52%)

Crypto (1:00 PST)

– BTC $8,232.36

– ETH $688.76

– BCH $1,4208.45

– LTC $136.89

Metals

– Gold $1,291.20 up 0.14%

– Silver $16.45 down -0.19%

– Copper $3.063 down -0.84%

Energy

– Oil $71.30 down -0.27%

– Brent $78.61 down -0.87%

– Nat Gas $2.836 down -0.80%