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Leading Democrat Triggers Stock Sell-Off

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STATE OF THE MARKETS

Democrats lead in the early count, rising covid cases, plus failed stimulus talks all boiled to lower stocks and higher safe-haven demand. Major indices closed lower with investors running for cover, as opening polls showed that Democrats lead by 9%. Though there is still almost a week before the final election day, major bookies are placing 2/3 odds for Biden to win the election and shall the election delivered a close and contested results; current trends will continue.

Safe haven was sought after, with gold futures climbed back above $1,900 and Dollar index closed above $93 with bond yield tumbled to two weeks low. Investors saw new energy agenda shall the Democrats win, thus oil futures hit $38.50 for the first time after 3 weeks.

In the FX space, short to medium term accounts remain bullish with commodities currencies leading and CHF on the back foot. Long term, however, uncertainties still dominate investors sentiments.

 


G8 CURRENCIES SENTIMENTS

ST USD JPY NZD AUD GBP CHF EUR CAD ST
MT NZD AUD JPY GBP EUR CHF CAD USD MT
LT CHF GBP NZD EUR CAD AUD JPY USD LT
** ST refers to Short-Term which is daily turnover, MT is Medium Term which is 
weekly
and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

TICKER LAST PRICE

% CHANGE

VOLUME 90 DAYS AVG
SNAP 41.27 -4.40 138,808.6K 23,422.2K
DSS 6.82 +68.81 119,930.1K 726.4K
AAPL 115.05 +0.01 111,850.7K 163,370.1K
GE 7.38 -3.28 104,254.4K 92,131.1K
AAL 11.80 -6.35 85,349.6K 71,100.2K
SPY 339.39 -1.85 91,473.0K 73,243.4K
SQQQ 22.58 +4.54 84,589.5K 46,990.7K
GRIL 2.04 +33.33 84,019.9K 507.0K
NIO 26.01 -4.23 72,610.3K 127,340.2K
AMD 82.23 +0.33 69,423.7K 57,507.8K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
AMZN 3,207.04 5,901.1K +18.28 18,925.1M
AAPL 115.05 111,850.6K -12.79 12,868.4M
TSLA 420.28 28,239.1K -31.04 11,868.3M
MSFT 210.08 37,111.5K +39.08 7,796.4M
FB 277.11 21,322.9K +13.58 5,908.8M
SNAP 41.27 138,808.6K +177.84 5,728.6M
AMD 82.23 69,423.6K +45.09 5,708.7M
ZM 517.79 10,080.7K +5.87 5,219.7M
NVDA 525.65 8,422.3K -15.47 4,427.2M
NFLX 488.24 6,186.0K -7.63 3,020.3M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
SPWR 16.42/16.00 stock options/put 70.54 154.2M
RUN 56.30/55.00 stock options/call 60.30 325.5M
PCG 10.03/10.00 stock options/put 49.14 174.4M
SOJ1 24.57/22.00 silver options/put 100 24.5K
CLZ0 38.40-50 crude oil futures 3,216 123.5K

OUR PICK – USD/CAD

With crude oil price collapse, rising worries of a second lockdown, all spell into risk-off mood; we favor long USD/CAD. Though current short term (ST) G8 currencies sentiments supports this trade idea, in the medium to long term this is more of a short-covering than a fresh buy. Be ready to exit when buyers show exhaustion especially around the 1.3410 pivot; though we believe a further leg higher is possible especially if Democrat won the US election.

 

HORIZON STRATEGY SL TP1 TP2
Short-Term BUY 1.3100 1.3250 1.3330
Medium-Term BUY 1.3100 1.3300 1.3400
Long-Term FLAT

 

Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. Opinions expressed are of the authors and not necessarily of MFM Securities Limited or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.