D&D Note (5.29.2018) ~ Spike in Italian Bond Yields Sends Stocks Down ~ #StockMarket #ItalyDebt #Sell-Off

D&D Note (5.29.2018) ~ Spike in Italian Bond Yields Sends Stocks Down ~

A political + debt crisis in Italy over the weekend saw a spike in Italian bond yields causing a huge flight to safety into the US Dollar and US Treasuries. Italy 2-YR Yield rose to 2.738% and the Italy 10-YR Yield rose to 3.178%

Turkey, Italy, and Argentina all remain major headwinds and potential risks to the global market.

Bank stocks got hit the hardest today with the US 10-YR Yield falling coupled with yesterday being a US market holiday. This could be a one day event for the US Bank stocks.

The Financial sector was the worse performing sector today falling almost -3.37%. The only sectors that finished in the green on the session were rate sensitive sectors of Real Estate and Utilities.

This led D&D to add to our positions in C and BAC which both represented two of the largest percentage decliners for D&D today. We still believe we’ll see US yields rising despite recent market action. In the case of potential Italian contagion the portfolio also closed our position in Sin Stock MO to raise further cash.

Pot Stocks CGC and MEDFF along with TSLA were the largest percentage gainers on the session for D&D.

In a speculative move on potential Russian oil supply fluctuation investors bid down Oil to $66.82 for WTI.

Volatility surged today with the VIX jumping over 30% to 17.25.

The indices finished off the low of the days with the DOW falling -1.58% today with S&P 500 falling -1.16% and the NASDAQ losing -0.50%

The US 10-YR Yield fell to 2.785% and the Euro/Dollar fell -0.76% to 1.1534.

D&D movers:

– CGC up 4.41%

– MEDFF up 2.01%

– TSLA up 1.76%

– FB up 0.44%

– JPM down -4.27%

– C down -3.99%

– BAC down -3.98%

– IMLFF down -3.60%

Indexes

– DOW down -1.58%

– NASDAQ down -0.50%

– S&P down -1.16%

Sector Movers:

– Real Estate up 0.25%

– Utilities up 0.04%

– Financials down -3.37%

– Materials down -1.77%

– Industrials down -1.64%

Notes

– US 2-YR 2.331% (down -0.153)

– US 10-YR 2.785% (down -0.15)

– US 30-YR 2.973% (down -0.121)

Volatility

– VIX 17.02 (up 30.48%)

Crypto (1:00 PST)

– BTC $7,463.20

– ETH $563.79

– BCH $983.40

– LTC $119.73

Metals

– Gold $1,300.80 down -0.22%

– Silver $16.415 down -0.79%

– Copper $3.0535 down -0.78%

Energy

– Oil $66.82 down -1.56%

– Brent $75.36 up 0.08%

– Nat Gas $2.87 down -2.35%