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Stocks Rebound as Optimism Returned

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STATE OF THE MARKETS

Stocks rebound as optimism returned. US stocks rebound on Thursday with Dow (+0.62%), Nasdaq (+0.12%), and S&P500 (+0.52%) all edged higher, after employment numbers showed less jobless claims and better annual GDP from 4.1% to 4.3%. The short-term optimism saw less demand for bond with only around $370 billion worth of block orders flowed in the US bond futures, after the 10Y yield edged back above 1.63%.

Crude fell back lower, to close below $58.33/bl, despite the Suez Canal incident, as markets weigh more on the rising Covid cases in Europe and South Asia. Gold was also under pressure, as yields seeking investors flock to bonds and sent the precious metal lower to close below $1,726.85/oz as New York close, which benefited the Greenback.

King Dollar took the helm of demand in the long term accounts as it edged lower in the short term, after optimism sent Aussie and Kiwi back in the demand territory. Euro and Sterling is consolidating while Swiss was sent to the back burner. Long term outlook remain mildly bearish as Yen and Swiss inched higher into demand.


G8 CURRENCIES SENTIMENTS

ST GBP AUD NZD USD CAD EUR JPY CHF ST
MT USD JPY CAD GBP EUR CHF AUD NZD MT
LT USD CAD GBP JPY EUR CHF AUD 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 1.22 + 8.44 267,126.9K 499,086.4K
CIDM 1.92 + 18.52 200,562.8K 19,929.0K
PRQR 9.22 + 62.32 150,168.4K 647.7K
SQQQ 14.17 + 0.50 139,370.0K 76,488.0K
AMC 10.94 + 21.29 131,192.8K 126,293.7K
NIO 37.94 + 2.65 118,082.0K 139,855.9K
UVXY 6.28 – 4.27 116,265.8K 73,951.8K
APOP 4.77 + 36.68 106,127.4K 221.2K
SPY 389.70 + 0.56 116,128.6K 74,287.3K
IMMP 3.68 + 39.92 107,572.5K 4,526.5K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 640.39 39,224.8K – 7.54 25,119.2M
AAPL 120.59 98,844.6K – 18.86 11,919.7M
AMZN 3,046.26 3,563.4K + 0.39 10,855.0M
GME 183.75 50,962.3K + 45.81 9,364.3M
MSFT 232.34 34,061.8K + 5.84 7,913.9M
FB 278.74 24,505.6K + 9.46 6,830.7M
BA 247.19 27,553.5K + 18.42 6,810.9M
BABA 222.72 24,819.8K + 54.51 5,527.9M
BIDU 204.57 24,457.3K + 101.23 5,003.2M
NIO 37.94 118,082.0K – 5.66 4,480.0M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
HYLN 11.44/12.00 stock options/call 338.97 98.2M
STNE 64.00/85.00 stock options/put 118.25 133.9M
MU 84.09/98.00 stock options/call 94.88 1,987.1M
ZN – UB 132.00 – 183.30 US bond futures 26,165 371,694.4M
CL 57.50 – 60.31 crude oil futures 650 38.6M

OUR PICK – No new pick

No new pick going into weekend. Short term optimism may see stocks climb higher as Yen and Swiss being sold, but with less long term investors willingness to buy further might see the rally short-lived. Instead, we believe long term investors are more likely to use the rally to liquidate and take more profits off the table; which sent more demand for cash than bonds. This is why we see the parallel movement in Dollar and yields, in our opinion. At this point, we also see markets is repricing gold as Biden administration is planning on further $3 trillion fiscal spending to help the US economy. This may buoy the precious metal in the short to medium term, in our view.

Trades updateMO reached TP2 and we have closed our positions; NIO has reached all targets and our long term view is neutral at this point; we remain bearish USD/JPY but have exited early as it closed above 109.00; EUR/USD short term was stopped out while medium term sell stop was filled and reached TP1. MRO remains active while Crude was stopped out. Have a great weekend!

HORIZON STRATEGY SL TP1 TP2
Short-Term
Medium-Term
Long-Term

 

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.