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Heavy Liquidation Forced Dollar Higher

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STATE OF THE MARKETS

Heavy liquidation forced Dollar higher. The Greenback rebounded on Monday as demand increased from heavy liquidation in the US equities markets as 7.9 billion shares exchanged hands in the Nasdaq & NYSE. Long term players were seen to use the rebound in Dow (229 points), Nasdaq (333 points) and S&P500 (60 points) to cash in their investments sheltering profits. No block orders in US treasuries were seen as prices fell, forcing yields to go up, with the 10Y benchmark yielded 1.08% as markets closed.

Crude surged higher, closed above $53.50/bl as supplies decreased and demand increased from the worst winter in US northeast. Speculators, however, were seen shorting the black gold with more than $139 million worth of block orders. Gold following the lead, reached as high as $1,871.80/oz, before settled lower around $1,860.15 as Dollar strength capped the yellow metal upside.

King Dollar continues to lead as safe-haven flows remain to dominate the FX markets. The interest bearing reserved currency is a more preferred than the safe-haven Swiss and Yen, as long term outlook remains bullish. Trading in the commodity complex, remain choppy, as trader awaits the senate approval’s of the new US stimulus plan.


G8 CURRENCIES SENTIMENTS

ST USD AUD NZD JPY GBP CAD EUR CHF ST
MT GBP USD NZD EUR CAD AUD CHF JPY MT
LT GBP USD NZD CAD AUD EUR 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
SNDL 1.21 + 48.47 1,736,054.8K 280,436.2K
AMC 13.30 + 0.30 434,608.0K 67,799.6K
LODE 2.95 + 116.91 323,105.2K 526.9K
SLV 26.76 + 7.08 280,615.0K 31,614.0K
NAKD 1.42 – 13.94 221,171.1K 163,934.3K
ZOM 1.10 + 19.57 213,296.4K 106,251.8K
NOK 4.89 + 7.24 194,969.2K 60,495.6K
F 10.83 + 2.85 157,114.4K 70,919.4K
ASM 1.85 + 50.41 129,594.6K 1,024.9K
DVAX 10.27 + 62.76 107,218.3K 3,060.4K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 839.81 25,391.3K – 30.57 21,323.9M
AAPL 134.14 106,239.8K – 9.47 14,251.0M
AMZN 3,342.88 4,160.2K  + 9.94 13,907.0M
GME 225.00 37,382.1K – 42.48 8,411.0M
MSFT 239.65 33,314.1K – 2.21 7,983.7M
FB 262.01 22,914.2K – 3.64 6,003.8M
AMC 13.30 434,608.0K + 70.94 5,780.3M
DD 73.14 64,983.6K + 189.72 4,752.9M
NIO 56.99 79,878.6K – 38.00 4,552.3M
BABA 264.69 15,289.3K – 39.92 4,046.9M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
SUM 22.59/22.50 stock options/call 114.05 77.9M
JMIA 62.80/80.00 stock options/call 85.46 786.8M
SI 29.00 – 30.00 silver futures 304 44.7M
6E 1.2075 FX futures/EURUSD 2,062 249.0M
CL 46.80 – 53.00 crude oil futures 2,708 139.2M

OUR PICK – XAG/USD

We are monitoring the spikes in Silver.  The spikes in silver on Monday morning caught everyone’s attention including ours. The talk about short squeeze in silver from retail investors was kind of funny and didn’t make sense as large speculators net positions are about 33% long.  So there is no short-squeeze but rather dealers asking for higher price as demand increased.

On another note, we see the heavy liquidation in the equities markets with investors preferring cash; is driving Dollar and bond yields higher, capping the rise in anti-inflationary assets like gold and silver. Until US senate’s approval of the new stimulus plan is confirmed, we see Dollar remains supported. It’s going to be a choppy first quarter, with unusual volatility; so we remain on the sideline for now until better risk/reward opportunity emerged. Stay tune.

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

 

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.