The Calm Before The Storm

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STATE OF THE MARKETS

Optimism retreats as risk seeks shelter in safe-havens. Equities took a step back as major institutions consolidated their gains and prepare to close books in three weeks before Christmas. On a side note, Amazon surprised markets with venture in pharmacy which saw CVS and Walgreens fell. Increased Covid cases led Federal Reserve to warn of a long road to recovery which sent the greenback lower and flight to bond safety. The benchmark 10Y yield fell to close 30 basis points lower than open.

President Trump’s latest decision to pull US troops out of the middle east, spooked the oil markets that are concerned on potential supply disruption that help support prices; but rising lockdowns worldwide is capping price from surging higher. Gold remains well bid with more than 1/2 billion worth of contracts traded on the futures market. Block orders of call options were also seen as traders bet on the rising volatility going into winter.

In the FX space, safe havens Yen and Swiss are already accelerating further in the short and medium term accounts. Dollar was drifting lower with heavy bidding volume that may suggest selling climax is at play.

 


G8 CURRENCIES SENTIMENTS

ST GBP JPY CHF EUR USD NZD CAD AUD ST
MT JPY NZD CHF EUR USD AUD GBP CAD MT
LT NZD AUD GBP JPY EUR CAD CHF 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
NIO 46.59 +2.22 343,626.1K 136,779.2K
FCEL 4.12 +10.01 150,374.8K 17,832.3K
PLTR 17.85 +12.05 116,520.0K 47,572.4K
LXRX 1.81 +40.31 102,487.6K 1,440.7K
GE 9.68 +1.15 90,290.1K 99,596.5K
RIOT 6.08 +48.41 81,898.0K 8,774.7K
PLUG 22.98 -8.08 78,892.3K 28,485.9K
AAPL 119.39 -0.76 74,158.6K 159,718.7K
DNK 2.40 +75.18 62,656.4K 235.4K
AAL 12.70 -0.70 61,852.5K 66,276.2K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 441.61 61,008.4K +102.21 26,941.9M
NIO 46.59 343,626.1K +53.85 16,009.5M
AMZN 3,135.66 3,428.6K -35.31 10,750.9M
AAPL 119.39 74,057.0K -36.27 8,841.7M
BA 210.05 37,868.9K +80.23 7,954.4M
MSFT 214.46 24,125.0K -22.99 5,173.8M
BABA 256.80 19,669.4K -19.48 5,051.1M
NVDA 536.89 7,769.8K -13.67 4,171.5M
FB 275.00 15,024.1K -32.07 4,131.6M
ZM 401.63 6,960.8K -30.80 2,795.7M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
EPD 19.12/20.00 stock options/put 95.33 141.5M
PRTY 3.94/5.00 stock options/call 86.28 41.5M
GM 41.98/38.50 stocks options/put 79.84 674.7M
GC 1,888.00-1,890.40 gold futures 2,700 509.8M
RP 0.8967 FX futures/EURGBP 100 118.8M

OUR PICK – EUR/GBP

Sceptics remain sceptical of Brexit sign-off. Speculation of the UK signing a trade deal with the EU as early as next week helped buoyed Sterling in the short-term, though medium-term sceptics still won’t believe it until they see it. Long term accounts see the issue will be resolved regardless; but play it safe by hedging it with anti-inflationary assets. This trade has about +70% positive weekly and +40% daily correlation with our previous pick on gold. It is also one of the most boring trade due to low volatility. Please adjust your risk exposure and patience wisely.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 0.8985 0.8930 0.8900
Medium-Term Buy 0.8870 0.8950 0.9000
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.

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MFM Team