D&D Note (5.30.2018) ~ Italy Contagion Fears Subside Pushing Markets Higher ~ #StockMarket

D&D Note (5.30.2018) ~ Italy Contagion Fears Subside Pushing Markets Higher ~

Markets bounced back today after yesterdays one day algo driven selloff. Calmer heads prevailed and investors have realized that Italy is not Greece and most likely not going to be another Brexit.

The Financial sector saw good gains but did not gain back all the losses from Tuesdays overdone pullback. The Energy Sector was the largest gainer on the session up 3.11% with Oil gaining 2.47% to $68.38 for WTI. All Sectors finished in the green on the day.

The VIX dropped -11.93% to settle around 15 today showing an ease in volatility.

The 10-YR Yield had the biggest move yesterday since the Brexit and today gained back 7 basis points to yield 2.839% which helped the bank stocks to rally.

Overall the markets are still in a 4-month trading range and most likely will continue to be range bound through the summer. D&D still holds to the thesis that we are in a rising interest rate and rising inflation environment and thus equities held should reflect that environment.

D&D movers:

– IMLFF up 5.40%

– RDS.A up 3.31%

– TSLA up 2.81%

– CGC up 2.35%

– AAPL down -0.21%

– TCEHY down -0.16%

– BABA down -0.01%

– UNLRY (UNCH)

Indexes

– DOW up 1.26%

– NASDAQ up 0.89%

– S&P up 1.27%

Sector Movers:

– Energy up 3.11%

– Financials up 1.94%

– Health up 1.38%

– No sector finished down

Notes

– US 2-YR 2.411% (up 0.092)

– US 10-YR 2.839% (up 0.071)

– US 30-YR 3.007% (up 0.04)

Volatility

– VIX 14.99 (down -11.93%)

Crypto (1:00 PST)

– BTC $7,308.55

– ETH $548.66

– BCH $956.96

– LTC $116.67

Metals

– Gold $1,306.80 up 0.21%

– Silver $16.53 up 0.96%

– Copper $3.073 up 0.34%

Energy

– Oil $68.38 up 2.47%

– Brent $77.73 up 3.10%

– Nat Gas $2.891 down -0.41%