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Markets Turned Risk-Off

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STATE OF THE MARKETS

Markets turned risk off. Risk-off sentiments swept the markets on Tuesday as US Feds Chair Jerome Powell and Treasury Secretary Janet Yellen answer to a two day congress testimony. Major US index, Dow (-0.94%), S&P (-0.76%) and Nasdaq (-1.12%) took a dip, while flight to bonds safety was observed forcing 10Y yields to drop lower, below 1.62% as flows to cash drove the Dollar index to close above 92.40 for the first time in 4 months.

Crude plunged deeper into the red, below $57.50/bl, after report of rising oil inventories exacerbate the already distress commodity markets about the vaccine rollout setbacks in Europe and Southern Asia. Even gold was sent lower, below $1,726.95/oz after investors dumped Aussie and Kiwi across the board, while demand more Swiss in the long term.

The panic was obvious as Yen took the reign of short and medium term accounts, while advancing further in the long term demand territory. More Euro than Sterling flows were also seen in the short and medium term, confirming the risk-off sentiments. Long term outlook is mildly bearish amid the US congressional testimony on the world’s largest economy.


G8 CURRENCIES SENTIMENTS

ST JPY USD CAD EUR GBP CHF AUD NZD ST
MT JPY USD EUR CHF CAD GBP AUD NZD MT
LT CAD USD GBP EUR JPY AUD CHF NZD 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 – 6.92 265,495.8K 499,597.9K
YVR 5.31 + 22.92 176,783.7K 2,778.3K
DLPN 18.33 + 236.33 174,577.9K 468.3K
GNUS 2.63 + 10.04 134,174.6K 31,209.2K
BNTC 9.26 + 190.28 124,594.7K 545.4K
SQQQ 13.43 + 1.36 101,455.0K 76,492.0K
ZOM 1.80 – 10.45 100,941.8K 150,200.2K
AAPL 122.54 – 0.69 95,467.1K 108,295.5K
AMC 10.66 – 14.65 87,923.2K 125,142.9K
SPY 389.50 – 0.79 90,686.6K 73,797.6K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 662.16 30,491.8K – 28.36 20,190.5M
AMZN 3,137.50 3,817.2K + 6.02 11,976.5M
AAPL 122.54 95,467.1K – 23.88 11,698.5M
MSFT 237.58 31,638.3K – 2.63 7,516.6M
FB 290.63 23,000.9K + 4.70 6,684.8M
BA 241.25 21,358.2K – 7.89 5,152.7M
BIDU 261.55 15,378.7K + 32.07 4,022.3M
VIAC 91.25 37,782.3K + 55.17 3,447.6M
DLPN 18.33 174,577.9K + 1,878.16 3,200.0M
AMD 78.38 40,466.6K – 9.60 3,171.8M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
VIAC 91.25/70.00 stock options/put 64.51 3,447.6M
AMC 10.66/7.00 stock options/put 62.42 937.3M
6N 0.7028 FX futures/NZDUSD 2,013 141.5M
RP 0.8654 FX futures/EURGBP 158 18.8M
CL 56.60 – 59.15 crude oil futures 1,570 91.1M

OUR PICK – A revisit to Marathon Oil (MRO, NYSE)

Trading the pullback. Early December last year, we pointed to the bottom in oil stocks, and our pick, MRO, has reached it’s long term TP1 and was just shy of few dimes to TP2 earlier this month. We believe current predicament that is hitting Europe’s and Southern Asia’s vaccine roll-out will put a pressure on crude price and oil stocks. The top is most likely already in place and we are now on the short side for the short and medium term. Long term is neutral, for now.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 12.00 9.60 8.50
Medium-Term Sell 12.00 8.50 7.50
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.