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Stocks Dip, Profit Taking Continues

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STATE OF THE MARKETS

Profit taking continues as buyers left stocks. Global stocks took another dip on Monday as investors continue to take profit to prepare for their book closing of the year. The middle east tension between Israel and Iran was muted as investors saw it more as a show of strength than an actual threat. Optimism retreated, yet remains in the driver seat as big pharmas started to apply for mass vaccine production.

Crude remains above $45/barrel as OPEC+ continue to debate about output cut in the wake of reviving Covid cases globally though vaccine hopes continue to suppress the price of gold. Gold continue to dive and closed below $1,800/oz for the first time in 20 weeks.

In the FX space, Dollar continue to be the favorite in the short term, along side Sterling, Euro and Loonie; while remain in the back burner in the medium and long term accounts. Though China data was surprisingly positive, medium term investors decided to take profit and liquidate Aussie longs. On another note, more than $1.2b Euro futures were traded as price reached 1.20 handle.


G8 CURRENCIES SENTIMENTS

ST GBP CAD USD EUR JPY NZD CHF AUD ST
MT EUR NZD CAD CHF AUD JPY GBP USD MT
LT NZD AUD GBP EUR CAD CHF 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
NIO 50.53 – 6.43 179,765.4K 141,657.4K
AAPL 119.05 + 2.11 169,410.2K 155,960.6K
PLTR 27.11 – 1.99 137,243.0K 61,022.7K
ACB 11.68 + 11.56 127,028.2K 22,151.6K
GE 10.18 – 2.12 125,104.1K 103,267.0K
FCEL 10.20 + 5.26 108,071.5K 31,959.6K
HEXO 1.12 + 29.43 112,301.9K 9,797.1K
AAL 14.13 – 5.67 97,536.3K 67,721.4K
NKLA 20.41 – 26.92 93,255.4K 27,466.8K
CAAS 10.50 + 174.15 93,871.5K 130.0K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 567.60 63,003.0K – 3.10 35,760.5M
AAPL 119.05 169,410.2K + 2.11 20,168.3M
AMZN 3,168.04 4,063.9K – 0.85 12,874.6M
MRNA 152.74 73,203.0K + 20.24 11,181.0M
NIO 50.53 179,765.4K – 6.43 9,083.5M
BABA 263.36 30,476.1K – 4.75 8,026.2M
ZM 478.36 16,646.5K + 1.43 7,963.0M
AMD 92.66 84,482.9K + 6.27 7,828.2M
MSFT 214.07 33,064.7K – 0.54 7,078.2M
CRM 245.80 18,966.4K – 0.74 4,661.9M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
T 28.75/27.00 stocks options/put 204.64 1,246.0M
CX 4.60/5.50 stocks options/call 172.46 33.4M
CL 44.70 – 45.49 crude oil futures 700 31.4M
EZ 1.1945 – 1.1956 FX futures/Euro 10,580 1,264.2M
GC 1,771.00 – 1,793.20 gold futures 421 75.0M

OUR PICK – EUR/AUD

Euro/Aussie shows a convergence of sentiments in the short and medium term accounts. If you had heard the old trading adage, “buy the rumors, sell the facts”; then this is the trade for it. Despite surprisingly bullish China data, Aussie was sold and failed to continue the rally on the news. Indeed, short and medium term accounts just point to this trade idea as three blocks of currencies set the pair apart. Weekly VPOC is around 1.62 and 21 days VPOC is around 1.6250. We believe, once the pair break 1.6280, the next leg up could go as high as 50% retracement of October high and November low, around 1.6480 and 1.6520 in extension.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 1.6180 1.6300 1.6350
Medium-Term Buy 1.6180 1.6350 1.6400
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.