D&D Note (5.23.2018) ~ Dovish FED Minutes Boost Stocks ~ #StockMarket #FED

D&D Note (5.23.2018) ~ Dovish FED Minutes Boost Stocks ~ #StockMarket #FED

Rarely does the release of the FED minutes move markets, this was not the case today. Stocks got a boost to rally into the close following the FED minutes from the last FOMC meeting. The catalyst for the move was the statement of being “symmetrical” in terms of their 2% inflation target. Rather than having 2% be a tripwire for monetary policy the FED is going to allow the economy to run hot and allow inflation to rise slightly above 2% for a period of time.

The FED allowing the economy to run hot is what has been deciphered as Dovish. They also setup a June rate hike as planned and this is already fully baked into the market. Where investors are placing the Dovish comments is for the back half of 2018 and then into 2019.

In simple terms Dovish can be considered “less rate hikes” and Hawkish can be considered “more rate hikes.” 

The 10YR yield reaction was to fall down to hover around 3%. The Dollar fell as a result of the FED minutes.

This morning when Citigroup fell below $70 D&D took that as an opportunity to add to our position to bring it more into balance with our BAC holding in terms of market value.

Today our largest gainer was Pot Stock MEDFF up 2.36% followed by Chip Stock NVDA up 2.06%. Our largest loser was Oil Stock RDS.A falling -2.44% followed by Pot Stock TWMJF down -1.94%.

Crypto as a group fell today seeing Bitcoin fall below $8,000 again to $7,594.75 which is still above the support level of $7,500.

D&D movers:

– MEDFF up 2.36%

– NVDA up 2.06%

– FB up 1.69%

– TSLA up 1.48%

– RDS.A down -2.44%

– TWMJF down -1.94%

– SIEGY down -1.79%

– CNTTF down -1.73%

Indexes

– DOW up 0.21%

– NASDAQ up 0.64%

– S&P up 0.32%

Sector Movers:

– Utilities up 0.90%

– Technology up 0.86%

– Real Estate up 0.81%

– Financials down -0.60%

– Telecom down -0.43%

– Materials down -0.18%

Notes

– US 2-YR 2.536% (down -0.056)

– US 10-YR 2.999% (down -0.066

– US 30-YR 3.159% (down -0.05)

Volatility

– VIX 12.55 (down -5.07%)

Crypto (1:00 PST)

– BTC $7,594.75

– ETH $592.50

– BCH $1,030.68

– LTC $121.75

Metals

– Gold $1,293.00 up 0.08%

– Silver $16.465 down -0.66%

– Copper $3.0705 down -1.96%

Energy

– Oil $71.73 down -0.65%

– Brent $79.64 up 0.09%

– Nat Gas $2.921 up 0.45%