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Risk Off Continues

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STATE OF THE MARKETS

Risk off continues. Risk-off sentiments continue to plague the markets, after US congressional testimony on the world’s largest economy finished on Wednesday. Investors seemed to brush off the optimism expressed by Chair Powell and Secretary Yellen; as Dow (-0.01%), Nasdaq (-2.01%) and S&P500 (-0.55%) slid lower, while gold (+0.05%) and Dollar index (+0.28%) edged higher. Higher bond prices on increased demand, forced the 10Y benchmark to slide 0.01% lower to 1.61%.

Crude rebounded higher after Suez canal incident hit the markets, sending the black gold to closed above $60.80/bl, overshadowed demand concerns on Europe and South Asia renewed lockdowns. Gold regained bid, above $1,734/oz after Feds disregard inflation concerns, on a new $3 trillion fiscal spending plan by the Biden administration.

In the FX space, slight repositioning was observed as end of March and first quarter is around the corner, with more Dollar short-covering across the board at the expense of Aussie and Kiwi; while Loonie remained strong in demand. Euro continue to overbid Sterling across the board, suggesting the base in EUR/GBP is in place. Short-term outlook seemed bullish as Kiwi moving higher in demand as Yen retreated, while Swiss remain stable in the medium and long term accounts.


G8 CURRENCIES SENTIMENTS

ST CAD USD JPY CHF EUR NZD GBP AUD ST
MT USD JPY EUR CHF CAD GBP AUD NZD MT
LT CAD USD EUR GBP 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
CSCW 1.42 + 22.41 386,722.8K 7,825.3K
HOFV 5.60 + 38.96 229,851.5K 11,374.2K
SNDL 1.12 – 7.02 217,869.9K 499,345.0K
APTO 6.10 + 66.21 180,604.9K 1,433.4K
CIDM 1.62 + 7.28 170,054.0K 18,095.3K
NIO 36.96 – 10.25 130,695.0K 140,399.1K
GNUS 2.73 + 3.80 118,290.5K 32,512.4K
ZOM 1.53 – 15.00 98,939.9K 151,013.2K
SQQQ 14.10 + 4.99 94,150.8K 76,181.8K
SPY 387.52 – 0.51 97,588.6K 73,854.6K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 630.27 33,795.1K – 20.32 21,300.0M
AAPL 120.09 88,530.4K – 28.77 10,631.6M
AMZN 3,087.07 2,958.9K – 17.76 9,134.3M
VIAC 70.10 89,815.3K + 221.07 6,296.1M
MSFT 235.46 25,620.1K – 21.07 6,032.5M
BA 239.24 24,055.1K + 5.25 5,754.9M
FB 282.14 18,675.0K – 15.56 5,269.0M
NIO 36.96 130,695.0K + 5.37 4,830.5M
INTC 62.04 74,584.6K + 114.49 4,627.2M
BABA 229.59 15,949.8K + 1.45 3,661.9M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
CCJ 16.77/18.50 stock options/call 169.69 80.8M
M 15.26/17.50 stock options/call 93.93 358.6M
GC 1,733.70 – 1,736.60 gold futures 92 16.0M
TN 145.1500 US bond futures 1,750 25,401.3M
CL 58.99 – 61.10 crude oil futures 1,800 107.1M

OUR PICK – Crude Oil

Bullish short-term. The Suez canal incident that block shipments of worldwide cargo is going into the third day now. Suez Canal Authority estimated that the best chance to re-float and free the stuck ship may not come until Sunday or Monday when the tide will reach a peak. Even then, there is no guarantee that the massive 200,000 metric ton Ever Given ship will be able to pass as it’s now in wedged position. If cargo has to be unloaded to reduce the weight, this could take weeks and delayed shipment of oil supplies; which is positive for crude oil. However, medium to long term risk pointed to more downside due to vaccine rollout setbacks in Europe and South Asia that would hamper demand.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 58.40 61.15 62.45
Medium-Term Sell
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.