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Markets Mixed on Hedging

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STATE OF THE MARKETS

Markets mixed on hedging. Major US equities indexes advanced higher on the back of defensive sectors as investors weighed the political turmoil in Washington against the prospect of a fresh fiscal stimulus plan given rising Covid-19 cases. The S&P 500 and Nasdaq was up 0.23% and 0.43% respectively, while the Dow was slightly down by 0.03%. Hedging was observed as investor bid longer-dated bonds, forcing yields to drop, with the 10Y closed at 1.09% compared to 1.13% the day before.

Crude almost hit $54 when Cushing reports showed more than expected reduced inventories, before settled lower around $52.90/bl as concerns on renewed lockdown plague the commodities markets. Gold struggled to advanced higher but remain well bid, underpinned by the reports of rising inflation and more fiscal stimulus from the Joe Biden administration. The yellow metal closed around $1,842.40, given strength in the Greenback.

The global reserve currency settled higher, above the 90.33 mark, on safe-haven flows as investors weigh the new lockdown in China, Europe and South East Asia. Though the commodity currencies remain in demand for the long term, Kiwi especially has suffered setback in the short and medium term accounts. On another note, Euro was under selling pressure after reports that Italy’s coalition government is on a brink of collapse as disputes between ex-premier Renzi and PM Conte escalated. Sterling remain well bid with Swiss in the short term as investors hedged with the safe-haven on any contingencies.


G8 CURRENCIES SENTIMENTS

ST CAD USD CHF GBP JPY AUD EUR NZD ST
MT GBP USD CAD AUD JPY CHF NZD EUR MT
LT AUD GBP NZD CAD USD JPY EUR 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
PLUG 69.50 + 5.27 153,092.7K 34,078.5K
GME 31.40 + 57.39 144,501.7K 11,634.7K
INTC 56.95 + 6.97 124,070.6K 34,921.3K
FCEL 19.14 + 0.47 115,262.9K 50,071.2K
NIO 62.15 + 0.18 116,059.2K 155,983.3K
FRSX 6.80 + 65.85 102,555.4K 6,392.7K
F 9.78  0.00 89,549.2K 65,080.4K
CCIV 16.72 + 18.16 94,091.5K 3,947.9K
OCGN 2.50 + 12.11 90,293.3K 34,616.5K
AAPL 130.89 + 1.62 88,636.8K 129,772.8K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 854.41 33,312.4K – 37.77 28,462.5M
AAPL 130.89 88,636.8K – 23.24 11,601.7M
PLUG 69.50 153,092.7K + 198.74 10,639.9M
AMZN 3,165.89 3,321.2K – 8.67 10,514.6M
BABA 235.30 38,805.0K  + 8.98 9,130.8M
NIO 62.15 116,059.2K  – 17.92 7,213.1M
INTC 56.95 124,070.6K + 187.51 7,065.8M
AMD 91.78 60,712.8K + 49.46 5,572.2M
ZM 364.63 14,056.5K + 115.05 5,125.4M
FB 251.64 19,528.9K + 7.81 4,914.3M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
QS 56.40/95.00 stock options/put 5.87 693.8M
PENN 104.21/85.00 stock options/call 4.71 286.4M
GC 1,854.90 – 1,859.00 gold futures 700 130.1M
ZF/N/B-UB 125.16 – 206.12 US bond futures 11,750 170,336.5M
CL 51.10 – 53.46 crude oil futures 3,758 199.0M

OUR PICK – USD/CHF

Playing the safe haven battle. Dollar, Swiss and Yen are considered safe-haven currencies. At this point in time, only Dollar comes with positive interest rates 0.25% while swiss at -0.75% and Yen at -0.10%. When the going get rough, Swiss will bid Dollar lower and improved risk sentiments will see Dollar bid higher. Rising momentum and G8 currencies sentiments suggested that medium and long term accounts see higher Dollar/Swiss, while in the short term there is still risk lower given the prospect of a fresh stimulus from the Joe Biden administration. Short-term players may prefer to short while medium and long term may want to wait.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 0.8920 0.8820 0.8780
Medium-Term Buy 0.8750 0.8850 0.8910
Long-Term Buy 0.8750 0.8850 0.8950

 

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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