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Stocks Rebounded on Stimulus Hope

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STATE OF THE MARKETS

Stocks rebounded on stimulus hope. US equities rebounded on optimism over new stimulus spending to revive the world’s largest economy after being plagued by the corona pandemic. The US senate took steps to allow Democrats to pass Biden’s package without Republican support, which boosted optimism and saw some return of Treasury demands around $95 billions. The 10Y benchmark yielded higher to close around 1.10% compared to 1.08% on Monday.

Crude continued its upward trajectory, closed above $54.75/bl as reports showed that OPEC+ countries are curbing output as per voluntary commitment, which helped support price as producers are trying to cope with the flagging demand. Markets optimism sent gold as low as $1,829.46/oz before settled around $1,837.35/oz as markets closed.

In the FX space, the Greenback took the helm of demand in the medium and long term accounts as it retreated in the short-term. The higher interest bearing Kiwi and Loonie, returned to demand, while Aussie remain suppressed despite the RBA decision to keep rate unchanged. There is a growing sentiments in the finance community that the worst is yet to come.


G8 CURRENCIES SENTIMENTS

ST NZD CAD GBP CHF USD JPY AUD EUR ST
MT USD NZD CAD GBP EUR JPY CHF AUD MT
LT USD NZD GBP CAD AUD CHF EUR 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 1.04 – 14.05 1,002,327.1K 299,556.0K
AMC 7.82 – 41.20 462,775.9K 72,605.4K
OCGN 3.26 + 80.11 410,442.1K 36,841.9K
NOK 4.53 – 7.36 165,679.7K 62,493.4K
AEZS 1.00 + 42.86 150,217.5K 4,584.2K
SLV 24.54 – 8.30 124,327.4K 34,376.4K
ZOM 1.08 – 1.82 104,813.5K 108,336.6K
CCIV 32.14 + 27.54 100,196.7K 14,017.9K
AREC 3.37 + 34.26 92,957.5K 3,625.0K
PFE 34.99 – 2.26 84,062.4K 40,550.6K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
AMZN 3,380.00 7,098.6K + 81.16 23,993.2M
TSLA 872.79 24,346.2K – 31.14 21,249.1M
AAPL 134.99 83,305.3K  – 27.15 11,245.4M
BABA 254.50 30,534.3K + 18.68 7,771.0M
GME 90.00 78,183.0K + 14.31 7,036.5M
GOOGL 1,919.12 3,316.6K + 54.09 6,365.0M
MSFT 239.51 25,916.3K – 22.65 6,207.2M
FB 267.08 17,320.7K – 27.50 4,626.0M
GOOG 1,927.51 2,273.7K + 29.71 4,382.6M
SAVA 55.44 76,134.9K + 861.93 4,220.9M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
CLDR 16.90/17.50 stock options/call 158.31 168.1M
SNOW 300.71/350.00 stock options/call 85.79 2,172.3M
SO 26.50/28.50 silver options/call 300 3.8M
ZT – UB 110.1563 – 203.19 US bond futures 7,000 95,716.2M
CL 54.16 – 54.55 crude oil futures 800 43.5M

OUR PICK – Clovis Oncology (CLVS, Nasdaq)

CLVS is 50% undervalued and onto the final push.  CLVS might not be the favorite stock but valuation using discounted cash flow (DCF) showed that this company is 53.5% undervalued. That make this stock fairly valued around $17.55/share. Though not paying dividend currently, its earning is increasing 7.6% and far better than the industry that is losing 10.3% last year. The risk with this stock is, it’s having far more debt that it’s asset, so it’s have no book value or negative equity value. In other words, in the event the company goes under, then be ready to lose all of your money. The irony is, as of Q3, 2020, institutions have increased their holdings from 9.40% to 36.84% which what drove the price higher. At this point, from technical point of view, we are looking at the final push to the upside as bidders outsized offers at the $8.00 mark.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 7.40 9.15 9.75
Medium-Term Buy 7.40 9.75 10.90
Long-Term Flat

Note: If you require fundamental reports for this stock, please contact your account manager or [email protected] for a copy.

 

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.