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White House Transition Steers Wide Market Rallies

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STATE OF THE MARKETS

Markets rally as White House transition is in process. Global equities rallied Tuesday as news hit the wire that the US General Administration Services finally making way for President elect Biden to prepare for the start of his team, giving access to meetings and funding. Dow hit the historical 30,000 mark as with S&P and Nasdaq; all at an all time high. Bond yields rallied, with the benchmark 10Y yield closed 20 basis points higher, around 0.885%, which trigger demand as more than $200b flows into the US Treasury.

Improved outlook together with the recent vaccine news, prompted oil to surge higher passed $45/barrel for the first time in 8 months and gold continued to dive deeper to $1,800/oz. The broad optimism did not help the greenback as it was sold against major peers, especially the commodity currencies, including the British Pound.

Kiwi, Aussie, Sterling and Loonie are at the helm of demand in the medium and long term accounts, while Dollar and Euro continued to be supported by Swiss and Yen. Short-term risk points to Dollar oversold and selling climax at play as 92 mark seemed well bid.

 


G8 CURRENCIES SENTIMENTS

ST AUD NZD CAD EUR CHF GBP JPY USD ST
MT NZD AUD GBP CAD EUR USD CHF JPY MT
LT NZD AUD GBP CAD EUR JPY USD 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
IDEX 3.15 +20.23 351,923.5K 12,973.6K
NIO 53.51 -3.38 243,669.7K 139,903.0K
FCEL 7.67 -10.29 237,164.0K 27,298.1K
GE 10.45 +3.77 176,288.8K 101,535.6K
AAL 14.82 +9.29 156,501.0K 66,028.9K
RIG 2.04 +13.33 145,705.0K 26,556.8K
FTEK 6.04 +114.18 142,991.1K 2,574.3K
PLTR 23.82 +13.21 115,468.8K 52,232.9K
AAPL 115.17 +1.16 113,874.2K 156,470.6K
GEVO 2.10 -1.41 112,702.8K 33,752.2K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 555.38 53,648.4K +48.21 29,795.3M
AAPL 115.17 113,874.2K -1.47 13,114.9M
NIO 53.51 243,669.7K -8.01 13,038.8M
AMZN 3,118.06 3,602.1K -28.79 11,231.6M
MSFT 213.86 33,979.7K +8.82 7,266.9M
XPEV 70.63 99,907.8K +88.61 7,056.5M
BA 218.49 31,131.9K +17.20 6,802.0M
BABA 279.96 20,660.5K -27.50 5,784.1M
FB 276.92 16,930.4K -19.88 4,688.4M
NVDA 518.31 8,662.4K -13.33 4,489.8M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
IDEX 3.15/3.00 stock options/call 170.72 1,108.6M
XOM 41.98/50.00 stocks options/call 162.70 1,972.2M
OL 44.80 – 45.15 crude oil futures 1,700 76.6M
GC 1,803.50 – 1,805.00 gold futures 365 65.8M
UB-TN 156.2750 – 216.1800 US bond futures 11,650 201,829.0M

OUR PICK – Yamana Gold (AUY, NYSE)

Time to accumulate some undervalued stocks. Yamana Gold is a precious metal producer with specific focus in gold and silver which operates in the Americas, mainly in Canada, Argentina, Chile and Brazil. The company has positive earning trends for the past 5 quarters and has beaten estimates in every single one. The dividends are also on the rising trend as the company announce an increase of $0.01 to 3 cents a share recently. Price pullback for the last three months was profit taking as evident in 30-50% divest from JPMorgan, Bank of America and TD Bank; while Shell Asset Management, Bank of New York Mellon and Credit Suisse were seen to increase their holdings. We expect accumulation is at play with buy-on-dip as the preferred strategy for long term accounts with $4.00 stop. Short and medium term may prefer a buy stop above $5.25 with $4.70 stop. Expect heavy buying  interest at $4.50 if it’s ever get there.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 4.70 5.80 6.20
Medium-Term Buy 4.70 6.20 7.00
Long-Term Buy 4.00 7.00 9.00

 

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