D&D Note (5.31.2018) ~ “National Security” Tariffs Imposed on Core US Allies, Markets Decline ~ #StockMarket #Tariffs

D&D Note (5.31.2018) ~ “National Security” Tariffs Imposed on Core US Allies, Markets Decline ~

Today the Trump Administration imposed Steel & Aluminum Tariffs sighting National Security on our core allies including the EU, Canada, and Mexico. Our NAFTA partners Canada and Mexico both announced retaliatory tariffs in a dollar for dollar manner.

This led markets to decline with the DOW falling -1.02% with CAT and BA leading laggards. The S&P 500 fell -0.69% while the tech heavy NASDAQ faired best only losing -0.27%.

The VIX although only rose 4.15% to 15.56 so not as much volatility as we saw from the Italy event on Tuesday.

Sector gainers on the day were Utilities gaining 0.11% and Technology adding only 0.02%. Leading laggard sectors were the two largest hit by tariffs in Consumer Staples falling -1.61% and Industrials losing -1.45%.

Deutsche Bank continued its long slide down today. The German bank with the largest derivative book in the world which might be majority short volatility is making global investors more and more worried. A large put option contract was purchased today which at strike level represents a further 40% decline.

Bitcoin has rebounded back to longterm support in the $7,500 region. Bitcoin Cash has rose back to the near $1,000 price. Due to the huge speculation and perhaps price manipulation bubble that broke at the beginning of the year the charts get very messy. The question now through the summer is $7,500 for Bitcoin the support or resistance level.

Cruise the driverless car division of GM gets a 2.25 Billion investment from SoftBank. This lifted the stock the most ever in one day by 12.87%.

D&D movers:

– FB up 2.19%

– GOOG up 1.61%

– TSM up 0.94%

– PYPL up 0.58%

– APHQF down -2.42%

– CNTTF down -2.40%

– TSLA down -2.40%

– CGC down -1.77%

Indexes

– DOW down -1.02%

– NASDAQ down -0.27%

– S&P down -0.69%

Sector Movers:

– Utilities up 0.11%

– Technology up 0.02%

– Consumer Staples down -1.61%

– Industrials down -1.45%

– Telecom down -1.30%

Notes

– US 2-YR 2.427% (up 0.016)

– US 10-YR 2.853% (up 0.009)

– US 30-YR 3.017% (UNCH)

Volatility

– VIX 15.56 (up 4.15%)

Crypto (1:00 PST)

– BTC $7,540.01

– ETH $575.02

– BCH $997.81

– LTC $119.36

Metals

– Gold $1,303.90 down -0.20%

– Silver $16.43 down -0.69%

– Copper $3.053 down -0.20%

Energy

– Oil $67.06 down -1.69%

– Brent $77.59 up 0.12%

– Nat Gas $2.956 up 2.46%