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Markets On Defense Amid Feds Minutes

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STATE OF THE MARKETS

Markets on defense amid Feds minutes. Markets continue to be at an impasse on Wednesday, as investors battled between strong economic growth and rising interest rates after Feds released its minutes.  Dow (+0.05%) and S&P500 (+0.15%) edged higher, while Nasdaq (-0.07%) and Russel 2000 (-1.60%) headed lower in a session led by communication, energy and financial. Utilities, consumer staples and IT still led the month as yields trending lower. The benchmark 10Y yield was as high as 1.78% last week before it fell to as low as 1.63% on Wednesday and settled around 1.68% as New York closed. 

Crude has been in the limbo for the past two weeks, trading within $62 – $57.20/bl band, as dealers continue to absorb orders on lower bids, amid the demand concerns come May when OPEC+ decided to hike supply. Gold returned to selling pressure as short-term trader took profits of the table. The yellow metal closed below $1,740/oz on a moderate volume.

In the FX space, safe haven Swiss seized the helm of demand across the board in the least expected move as markets ran on defense. King Dollar and Yen advanced further in the demand territory as to what appears to be a risk-off mood, after the commodity currencies were sent to the back burner for the short and long term accounts. The risk off appears imminent as Euro continues to overbid Sterling. If this trend continues, we might see a heavy exodus from equities soon.


G8 CURRENCIES SENTIMENTS

ST CHF USD EUR JPY CAD GBP AUD NZD ST
MT CHF EUR AUD NZD JPY USD GBP CAD MT
LT CHF USD CAD EUR JPY GBP 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
SOS 5.78 + 28.44 353,933.7K 45,356.0K
ODT 3.88 + 12.14 148,407.5K 1,146.5K
SNDL 1.00 – 1.96 141,973.9K 501,230.2K
XL 8.61 + 2.99 101,582.9K 11,099.3K
OCGN 6.89 + 8.50 86,840.5K 68,237.7K
VIAC 43.89 – 1.04 84,665.1K 27,000.2K
AAPL 127.90 + 1.34 83,466.7K 107,771.4K
NIO 37.27 – 6.83 80,022.7K 120,528.2K
ASTC 2.21 + 1.38 60,511.9K 1,773.8K
SQQQ 11.64 – 0.85 55,078.6K 80,049.1K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 670.97 26,309.4K – 26.79 17,652.8M
AMZN 3,279.39 3,346.2K + 8.01 10,973.5M
AAPL 127.90 83,466.7K – 17.80 10,675.4M
FB 313.09 22,855.2K + 5.87 7,155.7M
MSFT 249.90 22,719.8K – 24.36 5,677.7M
SQ 245.12 17,012.1K + 67.75 4,170.0M
BABA 225.42 18,034.8K + 7.20 4,065.4M
VIAC 43.89 84,665.1K + 17.04 3,715.9M
NVDA 565.74 6,282.1K – 8.30 3,554.0M
NIO 37.27 80,022.7K – 21.14 2,982.4M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
NCLH 31.31/32.50 stock options/put 89.49 1,314.4M
T 30.93/31.50 stock options/put 76.48 1,257.3M
6E 1.19175 FX futures/EURUSD 2,942 350.6M
GC 1,740.00 gold futures 50 8.7M
CL 59.12 – 59.46 crude oil futures 572 33.8M

OUR PICK – SIRIUS XM (SIRI, NASDAQ)

Low risk, high reward. When satellite radio was introduced back in the 90s, Sirius XM was as much a hype as Tesla is today. The stock went from $6 to almost $70 in over 5 years after its debut in 1995. As the craze faded, and people realized it’s still just a radio, price plummeted to less than a Dollar. In the last 10 years, it’s probably the most boring stock of all time with only 15% institutional participation. However, recent earnings that beat analysts estimates, propped price from $6 to $8 with only 30 cents risk per share in just a week.

The only problem was the company made more revenues, yet earn less income; hence the negative sentiments. But bear in mind that this is a 25 year old company that is trying to re-invent itself in a niche market. Recent pick-up in music streaming demands and new channels with Disney may see the company prosper. The dividend yields is less than 1% but it’s increasing for the past 5 years. We like this stock.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 6.00 6.60 6.85
Medium-Term Buy 6.00 6.85 7.15
Long-Term Buy 6.00 7.15 7.70

Note: If you require fundamental reports for this stock, please contact your account manager or [email protected] for a copy.

 

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.