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Markets Mixed in Reaction to Vaccine and Stimulus

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STATE OF THE MARKETS

Markets mixed in reaction to vaccine and stimulus. US Equities were mixed Thursday as data shows decline in weekly jobless claim but decline in services sector of the economy, making investors looked ahead to Friday’s employment numbers. Dow and Nasdaq was up 0.29% and 0.23% respectively, while S&P was slightly down by 0.06%. Asian equities drift lower in early Friday trading as Pfizer raised a concern on meeting its vaccine roll-out target because of supply-chain obstacles. On that note, bonds rallied and yields fell with the 10Y benchmark closed lower by 0.013%.

Crude rallied and closed above $46.30/barrel as OPEC and Russia agreed to raise production more gradually than expected; while gold continue to be supported on every dip and closed higher, around 0.08%, than Wednesday as Dollar index continue its free fall to 90.50 before bidders emerged to support the reserve currency.

Investors are pricing in another round of stimulus as Democrat House Speaker and Republican Senate Leader signaled that they are closer to reaching agreement before year end. The primary beneficiaries were Yen, Sterling and Swiss; which indicated some levels of risk-off as major players coming to close its book in the next few weeks.

 


G8 CURRENCIES SENTIMENTS

ST JPY GBP CHF CAD EUR AUD USD NZD ST
MT EUR CHF CAD AUD NZD GBP JPY USD MT
LT NZD AUD EUR GBP 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
LIZI 4.79 + 102.97 229,805.9K 1,563.5K
NIO 45.35 – 5.48 173,424.0K 147,083.2K
AAL 16.09 + 8.28 169,287.2K 67,845.5K
EVK 5.25 + 150.00 108,010.5K 2,121.1K
GE 10.60 + 1.63 91,452.9K 104,205.5K
PLTR 24.03 + 6.75 85,634.3K 65,195.5K
WORK 42.51 – 0.47 80,517.3K 17,447.4K
AAPL 122.94 – 0.11 78,967.6K 154,659.8K
FCEL 7.38 + 1.93 73,011.4K 35,094.0K
PFE 40.09 – 1.74 68,570.1K 32,677.9K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 593.38 42,552.0K + 4.05 25,249.5M
BA 237.20 45,945.1K + 59.26 10,898.2M
AAPL 122.94 78,967.6K – 22.99 9,708.3M
AMZN 3,186.73 2,892.0K – 29.81 9,216.0M
NIO 45.35 173,424.0K – 34.05 7,864.8M
MRNA 157.26 38,656.5K + 22.23 6,079.1M
MSFT 214.24 25,120.9K – 9.08 5,381.9M
SPLK 158.03 30,390.7K + 976.62 4,802.6M
CRM 220.97 21,395.3K + 84.20 4,727.7M
BABA 266.91 15,520.5K – 41.51 4,142.6M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
UAA 17.00/17.00 stock options/call 156.90 106.5M
EXPR 1.17/1.00 stock options/put 106.99 23.9M
RP 0.9040 FX futures/euro pound 538 65.4M
6E 1.2160 FX futures/euro 352 42.8M
CL 45.28 – 45.75 crude oil futures 2,100 95.5M

OUR PICK – GBP/CHF

Another block orders in Sterling. Block orders in Sterling was seen again Thursday, through Euro/Pound and the pair has more than 90% negative correlation on the daily and weekly to GBP/CHF – our pick today. After the surge last month, breaking out of the 1.18 – 1.19 range, recent drop is a medium term pullback of an uptrend as evident in the convergence of short and long term sentiments. Short and medium term upside is expected as long as 1.19 handle remain intact, while immediate resistance is around 144 days MA, circa 1.2180, with monthly pivot around 1.2035. Our strategy would be buy on dip with 1.1870 stop while risk averse would prefer buy stop above 1.2 as there is a chance that the pair could dive lower to retest the 1.19 handle.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 1.1900 1.2080 1.2180
Medium-Term Buy 1.1870 1.2200 1.2350
Long-Term Buy 1.1870 1.2300 1.2450

 

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.