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Equities Retreated on Waning Optimism

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STATE OF THE MARKETS

Equities retreated on waning optimism. Global equities were mixed with major stocks indexes retreated lower after report on jobless claims in the US was worst than expected. Though markets cheered the fresh $1.9T stimulus plan from Joe Biden administration, rising cases of covid-19 globally and new variants discovered in Japan and Brazil, brought the fear and greed index lower. More than $256b flowed into the shorter US 5Y bond as investors were concerned on the long term. Yield for the 10 year rose to 1.13% as price fell.

The waning optimism however, was rebalanced with bullish signs from Chinese import data; which drove crude higher to close above $53.55/bl, while the yellow metal gold remain well bid above $1,845/oz as the greenback drove lower post Fed Powell speech of accommodative monetary policies.

The Feds chairman reassured that the US central bank is not raising rates anytime soon or reducing its bond purchases in the near term, which weigh heavy on the Dollar. Commodity currencies were back in demand for the short-term while medium term accounts were seen on profit taking. Positioning in the long term accounts suggested that Dollar short-covering is going to stay for quite some time.


G8 CURRENCIES SENTIMENTS

ST AUD NZD CAD GBP JPY USD CHF EUR ST
MT GBP CAD JPY USD AUD CHF NZD EUR MT
LT AUD NZD GBP CAD USD EUR JPY 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
ZOM 1.01 + 3.48 317,432.1K 93,328.0K
BNGO 6.95 + 23.45 235,016.1K 40,505.3K
LXRX 8.05 + 105.36 163,685.7K 5,792.3K
CCIV 17.36 + 3.83 140,983.0K 5,060.7K
IDEX 3.30 + 21.77 135,387.4K 29,800.8K
F 10.17 + 3.99 112,695.3K 65,207.3K
NIO 60.78 – 2.06 99,338.4K 155,846.6K
NOK 4.09 + 2.76 93,198.6K 29,980.0K
GME 39.91 + 27.10 93,717.4K 13,080.9K
PLUG 66.54 – 4.26 89,190.0K 35,416.3K
** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 845.00 31,266.3K – 40.82 26,420.0M
AAPL 128.91 90,221.7K – 19.52 11,630.5M
AMZN 3,127.47 3,070.9K – 15.26 9,604.2M
BABA 242.98 31,381.6K – 13.66 7,625.1M
FB 245.64 29,739.4K  + 61.61 7,305.2M
MSFT 213.02 29,346.7K  + 8.73 6,251.4M
NIO 60.87 99,338.4K – 28.92 6,046.7M
PLUG 66.54 89,190.0K + 67.58 5,934.7M
AMD 90.79 53,408.2K + 32.11 4,848.9M
TSM 126.45 37,125.4K + 249.26 4,694.5M
** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

TICKER PRICE/STRIKE TYPE VOL/OI FUNDS FLOW
NAVI 12.11/12.50 stock options/call 130.99 4,944.5M
FANG 61.93/90.00 stock options/call 95.21 3,008.5M
GC 1,841.00 – 1,845.40 gold futures 720 132.6M
ZF 125.1925 – 125.22 US bond futures 11,750 256,682.2M
CL 51.76 – 53.65 crude oil futures 6,650 352.1M

OUR PICK – No new pick

No new pick going into weekend. Of our three picks this week, GBP/USD was stopped out, Gold and USD/CHF are still in play. We see weaker Dollar in the short term as markets digest the new stimulus plan, while medium and long term technical suggested that Dollar short covering is gaining momentum. Heavy bidding in the bond markets, as investors seeking higher yield might continue to buoy Dollar in the medium term.

HORIZON STRATEGY SL TP1 TP2
Short-Term
Medium-Term
Long-Term

 

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.