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Equities Gained But Investors Remain Sceptical

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STATE OF THE MARKETS

Investors are not convinced that the sharp rebound of the US economy in the last quarter will continue perpetually. Major US indexes saw a rebound after fresh data showed employment improved and the economy grow more than 30% in the last quarter. The benchmark 10Y yield rose slightly, 0.06%, to reflect the optimism but overall markets remain in fear as evident in the elevated levels of volatility.

Crude collapsed further to a new low around $35.00 as with gold to around $1,860 as investors revert to cash. Sellers are seen to dominate the markets as buyers cashed out preparing for the US election results next week. Speculation of a contested result, saw heavy liquidation in equities; though small cap stocks seems to be the primary beneficiaries.

US Dollar continue to be bought on dip at the expense of the Euro as ECB unveiled it’s preparation for a massive stimulus to counter resurgence of the corona virus. Long and medium term accounts seem locked to the safe-haven Yen, Dollar and Swiss, while still betting on the NZD and GBP.

 


G8 CURRENCIES SENTIMENTS

ST CAD USD AUD NZD JPY GBP CHF EUR ST
MT JPY USD NZD CHF AUD EUR GBP CAD MT
LT JPY CHF NZD GBP CAD USD EUR AUD 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
NIO 31.99 +16.29 214,034.7K 126,955.8K
NOK 3.35 -17.28 149,133.0K 30,433.6K
PINS 62.51 +26.92 128,101.8K 15,905.4K
AAPL 115.32 +3.71 146,129.2K 166,713.3K
GE 7.37 -0.67 123,298.0K 92,089.2K
F 7.90 +2.60 118,999.9K 66,506.1K
POLA 3.70 +58.80 98,240.2K 4,226.9K
SPY 329.98 +1.02 90,597.7K 76,303.9K
SQQQ 23.36 -5.23 76,838.2K 46,915.1K
UUU 3.27 +62.69 72,666.7K 380.9K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
AMZN 3,211.01 6,596.5K +28.23 21,181.4M
AAPL 115.32 146,129.1K +12.90 16,851.6M
TSLA 410.83 22,655.3K -38.82 9,307.5M
FB 280.83 32,368.1K +67.33 9,089.9M
PINS 62.51 128,101.8K +476.57 8,007.6M
NIO 31.99 214,034.5K +82.96 6,846.9M
MSFT 204.72 31,432.5K +10.77 6,434.9M
NFLX 504.21 11,120.6K +60.76 5,607.1M
ZM 489.68 9,207.5K +0.29 4,508.7M
GOOGL 1,556.88 2,770.3K +53.43 4,313.0M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
SPWH 13.91/12.50 stock options/call 89.61 16.5M
PINS 62.51/70.00 stock options/call 58.44 8,007.6M
BHC 16.85/16.00 stock options/call 56.86 43.7M
GC 1,866.10 – 1,872.00 gold futures 525 98,1M
CL 35.12 – 41.48 crude oil futures 2,612 100.0M

OUR PICK – GOLD

Though gold is usually in demand in the time of crisis and as a hedge against inflation, recent fear of deflation might send it lower in the medium term. A Blue sweep in the US election would trigger further equities consolidation, rising demand for treasuries and hence the Greenback. Coupled with deflationary concerns this means lower gold. However, in the long term, with the Democrats planning to spend more than the Republicans, it will ultimately means more deficits and depreciating Dollar. In the mean time, we favor shorting the precious metal.

HORIZON STRATEGY SL TP1 TP2
Short-Term BUY 1,855 1,890 1,900
Medium-Term SELL 1,935 1,835 1,800
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.