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Safe Haven Flows As Optimism Waned

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STATE OF THE MARKETS

Safe haven flows as optimism waned. Global equities closed lower Thursday amid worries about rising inflation that would prompt central banks to hike earlier than expected. Dow (-0.38%), FTSE (-1.40%), Nikkei (-0.72%) drifted lower as player took profit and seek safe haven. Gold, Swiss and US Bonds saw inflows of more than $500 billion, with shorter dated maturity being preferred.

Crude futures gapped down Friday after settled around $60.50/bl on Thursday amid profit taking from long term players as Texas refineries went back online. Gold, on the other hand, dipped below $1,780/oz in early Friday trading after more than $76 million of block order failed to resuscitate demand.

In the FX space, the safe haven flows benefitted Swiss, after Yen retreated in the short term, and Dollar in the medium and long term accounts. Demand for the Comdolls receded across the board after Sterling regained the helm of demand. Euro saw steady and increased flow especially in the short-term while Loonie took a hit in the aftermath of oil’s retreat.


G8 CURRENCIES SENTIMENTS

ST GBP EUR NZD CHF AUD JPY CAD USD ST
MT GBP AUD CAD USD NZD EUR CHF JPY MT
LT GBP NZD AUD USD CAD 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 1.45 – 15.70 437,568.0K 435,980.4K
PLTR 25.17 – 7.05 313,175.1K 61,899.5K
ONTX 1.76 + 16.56 244,441.4K 33,688.9K
CTRM 1.21 + 4.31 166,567.5K 114,801.7K
AMC 5.51 – 0.72 130,540.8K 90,145.3K
AVGR 2.10 + 24.26 122,982.1K 17,359.7K
EBON 11.29 + 7.73 118,830.2K 6,134.3K
AAPL 129.71 – 0.86 96,856.7K 110,232.7K
UVXY 9.35 + 1.19 91,042.7K 56,346.0K
SQQQ 12.38 + 1.31 87,545.2K 60,689.7K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 787.38 17,957.0K – 60.02 14,139.0M
AAPL 129.71 96,856.7K – 45.50 12,563.0M
AMZN 3,328.23 3,033.6K – 65.10 10,096.6M
PLTR 25.17 313,175.1K + 124.86 7,882.6M
RIOT 62.03 86,796.1K + 55.01 5,384.0M
CCIV 58.05 76,982.7K – 41.92 4,468.9M
WMT 137.66 32,309.1K + 171.20 4,447.7M
MSFT 243.79 16,925.5K – 77.46 4,126.3M
FB 269.39 15,249.1K – 60.62 4,108.0M
BABA 264.51 15,382.3K – 49.12 4,068.8M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
AFL 47.29/47.00 stock options/call 108.25 198.4M
PLTR 25.17/25.50 stock options/call 80.67 7,882.6M
GC 1,773.30 – 1,788.80 gold futures 430 76.4M
ZT/F/B 110.16 – 164.25 US bond futures 41,323 509,159.0M
CL 56.87 – 61.60 crude oil futures 3,026 183.9M

OUR PICK – USD/CAD

Safe haven flows would send USD/CAD higher. At this point we are just not sure whether this safe-haven flows would continue or it’s just a fling as US $1.9T stimulus is still on the way. So most likely it’s just repositioning and hedging on Dollar short covering in our opinion. Either way, in the short term at the very least, we would see USD/CAD rise if and only if 1.2650 is being defended. So there is two way to play this. The safe way is to buy stop @ 1.2700 with 1.2670 stop. Buy at market with 1.2640 stop is the alternative. We target 1.2750 and 1.2780 in extension. GOD willing, trades updates will come Monday. Till then, be safe and have a great weekend.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 1.2640/70 1.2750 1.2780
Medium-Term Flat
Long-Term Flat

 

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.