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Equities Retreated on Profit Taking

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STATE OF THE MARKETS

Equities Retreated on Profit Taking. Rising corona virus cases globally and another possibility of President Trump impeachment, forced investors to take more profits off the table. Broad equities weakness were observed on the back of rising bond yields with the US10Y closed above 1.15% for the first time in 10 months. Equities decline were led by communication services, consumer and real estate, while health care and energies made a rebound.

Crude retreated lower on concerns of renewed lockdowns would hamper short-term demand. The black gold closed below $52.25/bl while it’s counterpart, the yellow metal gold dropped as low as $1,817.14 before finding bidders to closed above $1,844.65/oz as investors cashing out for Dollar.

In the FX space, the greenback continued its lead in the short term while seize the lead for the medium term forcing Euro and Kiwi to the back burner. Changing sentiments in the long term was also observed as Dollar is being supported by Loonie, Swiss and Yen; which suggested that short covering in Dollar might persist for quite some time.

 


G8 CURRENCIES SENTIMENTS

ST USD JPY GBP CHF CAD EUR AUD NZD ST
MT USD AUD CAD GBP NZD EUR CHF JPY MT
LT AUD GBP NZD EUR USD CAD CHF JPY 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 62.70 + 6.42 279,770.3K 154,055.3K
LMFA 2.45 + 15.02 222,126.9K 4,910.1K
TRXC 1.66 + 43.10 194,444.7K 5,297.1K
BNGO 5.67 + 20.64 144,458.3K 37,886.1K
AVGR 1.45 + 61.90 137,418.4K 12,219.4K
CCIV 13.20 + 31.61 108,167.5K 1,225.1K
AAPL 128.98 – 2.32 100,620.9K 131,550.8K
F 9.30 + 3.33 96,129.5K 63,816.9K
MARA 23.36 – 11.48 93,551.1K 22,791.7K
JAGX 3.60 – 10.00 83,700.2K 38,705.7K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 811.19 59,554.1K + 9.32 48,309.7M
NIO 62.70 279,770.3K + 96.63 17,541.6M
AAPL 128.98 100,620.9K – 12.31 12,978.1M
AMZN 3,114.21 3,669.0K + 0.36 11,426.0M
FB 256.84 30,412.2K + 75.25 7,811.0M
NVDA 544.86 12,975.7K  + 79.82 7,069.9M
BABA 227.37 23,036.8K – 32.29 5,237.9M
MSFT 217.49 23,047.0K – 16.78 5,012.5M
AMD 97.25 48,669.1K + 28.01 4,733.1M
BIDU 219.55 17,668.3K + 42.34 3,879.1M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
MIC 29.83/42.50 stock options/call 9.11 104.7M
MNST 92.94/96.50 stock options/call 3.74 140.2M
RP 0.9015 FX futures/EURGBP 617 75.2M
GC 1,850.00 gold futures 500 92.5M
CL 50.85 – 52.33 crude oil futures 3,100 161.9M

OUR PICK – GBP/USD

Unsettled Brexit and Negative Rates May Cap Sterling Growth. Today’s speech by the BoE’s external MPC member, Silvana Tenreyro, about the need for additional stimulus and keeping options open for pushing interest rates into negative territory; plus absence of an agreement on financial services with the EU, may be the catalysts that would cap Sterling further growth. 52 week high circa 1.3700, and lower high circa 1.3670, and further lower high circa 1.3630 have formed the upper downtrend line in the 8H chart with 1.3600 stands as weekly pivot. 21 days VPOC is around 1.3580 and we prefer sell on rally for the short and medium term accounts. Short term traders may want to set hard stop at 1.3630 and cut losses short if rates closed above 1.3600 on the daily.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 1.3600 1.3500 1.3450
Medium-Term Sell 1.3630 1.3450 1.3380
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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