Markets Gearing for Holiday, Safe-Havens on Lower Gear

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STATE OF THE MARKETS

Safe havens are on lower gear as markets gearing for holiday. With Thanksgiving just a couple of weeks away, Dow took a beating down 23 points (-0.08%) today, tech heavy Nasdaq rose 268 points (+2.31%) and S&P500 added 27 points (0.77%) as investors switched to technology stocks from cyclical that were in euphoria after the vaccine news elevated risk appetite. Bond yields remain unchanged as US treasury was on holiday for Veterans’ Day.

Crude rallied higher to $43.26 when industry data revealed a significant drop in US inventories but closed lower, sending a “bearish hammer” signal as OPEC reduce their demand projection due to the pandemic. Analysts argued that OPEC had not count in vaccine and the projection is overly pessimistic. Gold struggled to find buyers but remain well supported above $1,850/oz.

Profit taking in Dollar continue to see the Dollar index inching higher to regain the 93 handle at the expense of Euro and Swiss as investors bidding on NZD, AUD and CAD for yields. The vaccine news seem to change the overall outlook as long and medium term accounts pushed safe-havens to the lower gear.


G8 CURRENCIES SENTIMENTS

ST NZD USD AUD JPY CAD CHF GBP EUR ST
MT NZD GBP AUD CAD EUR USD CHF JPY MT
LT NZD GBP AUD CAD JPY USD EUR CHF 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 43.08 +3.68 178,743.5K 139,417.4K
FTEK 1.25 +64.26 159,054.7K 308.5K
ACB 7.66 -7.71 122,742.2K 16,267.7K
AAPL 119.49 +3.04 111,980.8K 160,350.9K
GE 8.89 -1.00 86,831.1K 97,919.4K
AAL 12.04 -2.75 81,003.3K 66,408.2K
FPRX 18.00 +237.08 78,338.4K 420.6K
F 8.38 -0.60 75,584.3K 64,136.6K
SQQQ 19.64 -6.65 66,068.4K 59,312.1K
PLUG 23.00 +14.94 59,251.8K 27,777.7K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
AMZN 3,137.39 4,363.8K -22.11 13,690.9M
AAPL 119.49 112,199.0K -8.28 13,406.7M
BABA 265.65 41,670.3K +92.99 11,069.7M
NIO 43.08 179,195.3K -1.78 7,719.7M
TSLA 417.13 17,334.0K -43.37 7,230.5M
ZM 413.34 16,671.9K +56.55 6,891.1M
MSFT 216.55 29,435.5K -7.49 6,374.3M
BA 182.15 29,876.5K +59.13 5,442.0M
NVDA 536.72 10,111.3K +18.98 5,426.9M
FB 276.48 14,950.4K -34.34 4,133.5M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
DDOG 86.83/70.00 stock options/put 65.48 2,201.0M
KR 32.09/35.00 stock options/put 54.82 297.3M
PFE 38.50/41.50 stocks options/call 53.72 2,154.4M
GC 1,866.80 gold futures 172 32.1M
CL 42.30 – 44.00 crude oil futures 1,649 71.8M

OUR PICK – Kroger (KR, NYSE)

Kroger shall benefit from holiday sales. Wall-Mart and Kroger are among the superstores that benefits from holiday sales like Thanksgiving and Christmas. Though Wall-Mart paid higher dividend than Kroger, relative to price, Kroger yield is closer (2.26% vs 1.48%) to industry median of 2.82%. Plus, Wall-Mart is already 88% of its EV while Kroger is 59%. Chart wise, there is still a chance for Kroger to slide lower to 100% of A around $29.70, so we’ll wait for price to break the red downtrend and remains above $31.00, around 61.8% retracement of March low and September high before initiating any positions. For aggressive short-term trader, though, a buy on dip with $30.70 stop might be their choice.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 30.70 33.40 34.60
Medium-Term Buy
Long-Term Buy

 

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.

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MFM Team