STATE OF THE MARKETS
Stocks climbed amid stimulus hope and improved earnings. US equities climbed higher on the back of improved earnings reported by major banks and corporations; fueled by Treasury Secretary nominee Janet Yellen’s statement to the Senate that America need to “act big” to save the Covid ridden economy. The benchmark 10Y yield slid lower, below 1.10%, as more than $68 billion flowed into the Treasury coffer.
The risk-on sentiments, sent crude higher on the hope of improved demand as vaccine roll-out completed by mid-summer. The black gold closed nearly $53/bl with more than $200 million worth of block orders in the futures market. Gold retained bidders as new stimulus raised concerns of rising inflation. The yellow metal advanced higher, breaking $1850/oz, in the early Asian trading, Wednesday.
In the FX space, the greenback took a pullback in the short-term, while remain well supported in the medium-term. The global reserve currency took a step back in the long-term accounts, paving way to Kiwi and Swiss, while remain supported by Yen and Euro.
G8 CURRENCIES SENTIMENTS
** 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
|VOLUME||90 DAYS AVG|
** % Change here refer to price vs previous day price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
|GC||1,831.00 – 1,831.20||gold futures||600||109.9M|
|ZN||136.2450||US bond futures||5,000||68,122.5M|
|CL||52.38 – 53.08||crude oil futures||3,871||205.0M|
OUR PICK – Cronos Group (CRON, NASDAQ)
Cannabis is overrated and has a long way to go. When cannabis was legalized in Canada and certain states in the US, “weed stocks” as they called it, was the craze of the day. Now that with Democrat in control of the House, Senate, and the White House; talk is high that cannabis stocks are making a come back. Indeed, since the beginning of November last year, the sector has rallied massively by 40% to 150%, surpassing the markets 15% return. With Q4 earnings coming in March, we see Cronos making a pullback after bearish engulfing candle on Tuesday, suggesting a sell on rally for the short to medium term with $12 stop. In the long term, however, we see Cronos has a room for further growth.
Note: If you require fundamental reports for this stock, please contact your account manager or [email protected] for a copy.
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.