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Equities on Panic Attack as New Corona Strains Emerged

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STATE OF THE MARKETS

Equities on panic attack as new corona strain emerged. Global equities suffered a set back as new strains of the corona virus was reported in the United Kingdom. The decision to lockdown England on late Sunday, spurred a panic attack in Asia leading to abandon of high beta assets and flight to the safe-haven Dollars. The benchmark US 10Y yield, fell more than 50 basis points on the news, before climbing back to settle around the open, 0.94%.

Crude gapped down on the open, dived to as low as $46.25/barrel before settled around $47.80 as investors worry a second lockdown will be imposed globally and travel restrictions would hurt demand for the black gold.  The yellow metal gold on the other hand, was seen in a whipsaw before closed with bearish uncertainties around $1,876.21/oz.

King Dollar finally made a come back with the Dollar index (DXY) closed above the 90 handle after being pushed down from as high as the 91 handle. The reserve currency seems to be on continued support from the Loonie in the medium term as it flipped to demand in the short-term. Commodity currencies suffered major setback on the break of the new corona saga, while as of US market close, Euro was seen leading the demand in the short-term.


G8 CURRENCIES SENTIMENTS

ST EUR USD JPY CHF AUD GBP NZD CAD ST
MT JPY AUD EUR GBP CHF NZD USD CAD MT
LT AUD EUR CHF NZD CAD GBP 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 48.95 + 4.77 132,558.1K 154,376.2K
AAPL 128.23 + 1.24 121,251.5K 142,828.9K
VXX 18.44 + 7.96 89,270.7K 36,228.3K
BAC 29.74 + 3.73 93,397.4K 58,310.5K
AAL 16.10 – 2.48 87,243.8K 71,002.0K
GE 10.77 – 0.37 85,818.7K 103,731.2K
UVXY 12.25 + 11.16 84,754.1K 40,829.8K
SPY 367.86 – 0.36 96,386.7K 72,522.5K
PLTR 28.51 + 9.78 76,729.1K 66,171.2K
XLF 28.72 + 1.35 77,688.1K 57,023.4K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 649.86 58,045.2K – 2.83 37,721.3M
AAPL 128.23 121,251.5K + 15.25 15,548.1M
AMZN 3,206.18 3,836.8K + 4.43 12,301.5M
MSFT 222.59 37,181.8K + 25.11 8,276.3M
NIO 48.95 132,558.1K  – 22.03 6,488.7M
FB 272.79 16,553.7K  – 1.49 4,515.7M
AMD 93.23 47,093.8K + 5.92 4,390.6M
BA 219.31 18,726.5K – 14.71 4,106.9M
NVDA 533.29 7,558.3K + 14.50 4,030.8M
ZM 408.97 8,557.3K + 12.19 3,499.7M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
XP 40.73/35.00 stock options/put 223.11 48.8M
GM 41.21/38.00 stock options/put 99.61 640.2M
SI 26.395 – 27.18 silver futures 370 50.1M
RP 0.9205 FX futures/EURGBP 539 66.5M
CL 46.00 crude oil futures 300 13.8M

OUR PICK – NZD/USD

Flight to safe-haven Dollars would hurt Kiwi the most. If the current trend continues and the new strains of corona virus is far deadlier and more contagious than the originals, then the primary casualties are the commodity currencies particularly the Kiwi. This pullback, if happen is also timely for the 5 motive waves higher from March low. Assuming fractal is correct and the top is already in place for December, then we should see a corrective waves lower to test 0.6800 in the medium-term. 0.7120 is pivot and the exchange rate should not closed above it on the daily for this trade idea to be valid.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 0.7130 0.6980 0.6920
Medium-Term Sell 0.7130 0.6920 0.6820
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.