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Asia Soars As Feds Stand Pat

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STATE OF THE MARKETS

Asia soars as Feds stand pat. Feds decision to keep its monetary policy unchanged, sent Dollar lower and gold higher as US equities rise further. After a few sessions of mixed markets, Asia soars as Feds pledged that rate would not rise through at least until 2023. Nikkei (+0.91%), Shanghai (+0.55%) and Hang Seng (+1.56%) gapped up on open and continue to climb as of this writing. On the side note, US 10Y benchmark yielded lower, after spiked to almost 169 basis points, the highest in more than a year.

Crude continues to edged lower, closed below $64.60/bl after concerns of Europe’s decision to pause vaccination would overwhelm supply. Few European countries already reported rising covid cases, after vaccine from AstraZeneca was reported causing serious side effects. Gold took the center stage, throwing the bears after penetrating the key $1750 resistance, as the Greenback lost bid.

The world reserve currency, was under heavy selling pressure as markets expectation of a sooner rate rise was shattered. The safe haven Swiss was seen retreated with Yen in the short term but edged higher in the medium term as Yen hold steady. The Aussie, Kiwi and Euro seized the helm of demand in the short term as Loonie retreated. Sterling remained relatively unchanged.


G8 CURRENCIES SENTIMENTS

ST AUD NZD EUR GBP CAD CHF JPY USD ST
MT CAD AUD CHF NZD EUR GBP USD JPY MT
LT CAD GBP AUD USD NZD 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
SNDL 1.54 + 1.99 268,556.3K 504,841.7K
ZCMD 2.66 + 46.15 139,677.5K 395.4K
TNXP 1.50 + 18.11 121,695.5K 31,182.4K
SQQQ 13.00 – 1.22 119,555.5K 76,385.0K
PLUG 39.33 – 7.85 119,497.5K 40,261.8K
ZOM 2.25 – 0.44 119,896.2K 146,709.1K
AAPL 124.76 – 0.65 111,932.6K 108,325.9K
F 12.69 + 1.60 109,281.2K 76,298.2K
OCG 10.60 + 76.96 100,515.2K 2,733.0K
NIO 44.76 + 2.47 96,149.9K 151,401.3K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 701.81 40,372.4K – 4.54 28,333.8M
AAPL 124.76 111,932.6K – 8.28 13,964.7M
AMZN 3,135.73 3,118.5K – 14.02 9,778.8M
MSFT 237.04 29,562.1K – 3.97 7,007.4M
BA 263.59 23,785.5K + 7.10 6,269.6M
FB 284.01 21,315.0K + 3.82 6,053.7M
PLUG 39.33 119,529.9K + 214.30 4,701.1M
NIO 44.76 96,149.9K – 21.48 4,303.7M
PDD 149.46 27,357.8K + 202.37 4,088.9M
BABA 233.34 16,949.5K + 7.06 3,955.0M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
SABR 16.83/16.00 stock options/put 80.36 240.6M
CCJ 19.28/22.00 stock options/call 57.83 151.7M
GC 1,748.20 – 1,750.00 gold futures 200 35.0M
ZN/F 123.2400 – 131.1950 US bonds futures 10,000 127,217.5M
CL 63.75 – 64.65 crude oil futures 3,506 225.6M

OUR PICK – USD/JPY

Increased Yen flows was observed. We have observed increased Yen flows as New York closed and the flows accelerated as Tokyo went on lunch today. We suspect Yen pairs are forming a top and waiting for the right catalysts to dive further. That being said, we also suspect that gold has already formed the base for the 4th wave on weekly, around $1,676.75/oz, the low of this month. If gold closed above $1,750.00 in the next week, then a bullish hammer reversal is confirmed, which could be our next trade.

On another note, since the top is forming, there is still chance for the pair to spike higher to filled stop orders. A close above 109.00 on the daily might signal that intent. This trade also has more than 90% on daily and 80% on weekly correlation with our USD/CHF trade. Be ready to manage your stops and risks. Trade safely.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 109.40 108.40 107.80
Medium-Term Sell 109.60 107.80 107.20
Long-Term Buy

 

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.