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Dollar Tumbled As Inflation Rise

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STATE OF THE MARKETS

Dollar tumbled as inflation rise. US stocks traded mixed on Tuesday as S&P500 (+1.05%) and Nasdaq (+0.33%) climbed higher while Dow (-0.20%) edged lower; after report of US inflation (2.6% YoY) registered the highest in two years. Dovish Feds stance on the interest rate, forced markets to reprice Dollar and the world reserve currency tumbled to 91.80 in the futures markets, against a basket of six major currencies. The benchmark US10Y yield fell further on the sentiment, around 1.62% compared to 1.67% on Monday.

Crude advanced further, broke the $60/bl barrier, after news hit the wire that China’s crude imports jumped 21% YoY. Investors seemed to shrug off the news on J&J vaccination pause. Capitalized on the rising inflation, gold closed higher, above $1,743.80/oz after $174 million worth of block orders hit the futures market. No selling pressure was observed at the $1,750 level.

FDA suspension of J&J vaccination program, after six women were reported to developed blood clots post inoculation, sent Yen further in the demand territories across the board, while short term traders were seen betting on the Kiwi as RBNZ stand pat in early Asian trading on Wednesday. King Dollar was seen on selling pressure as markets favored high beta Comdolls in the short to medium term accounts. Euro Sterling is trapped in a range, while long term outlook seemed bearish as risk sentiments fade further.


G8 CURRENCIES SENTIMENTS

ST NZD JPY EUR AUD CHF CAD GBP USD ST
MT CHF JPY EUR NZD CAD AUD USD GBP MT
LT CHF EUR JPY USD CAD 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
VTVT 3.44 + 33.85 255,961.3K 3,958.5K
ZOM 1.00 – 10.71 125,364.6K 145,650.0K
AAPL 134.43 + 2.43 91,266.5K 107,370.8K
PLTR 25.42 + 8.91 83,913.5K 78,443.8K
NIO 38.48 + 3.61 62,005.7K 115,335.7K
SOS 4.80 – 4.38 64,079.7K 51,337.4K
LYL 1.60 + 12.68 61,060.3K 824.1K
SQQQ 10.72 – 3.60 58,327.9K 80,855.8K
SPY 412.86 + 0.30 56,551.0K 77,137.3K
F 12.20 – 1.45 51,556.0K 74,315.4K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 762.32 44,652.8K + 31.72 34,039.7M
AAPL 134.43 91,266.5K – 9.34 12,269.0M
AMZN 3,400.00 3,315.8K + 2.69 11,273.7M
NVDA 627.18 16,905.2K + 114.17 10,602.6M
MSFT 258.49 23,837.4K – 19.38 6,161.7M
BABA 241.89 20,793.0K + 6.96 5,029.6M
FB 309.76 14,036.9K – 33.17 4,348.1M
BA 253.27 15,901.4K – 7.28 4,027.3M
NVCR 197.33 16,626.3K + 1,068.66 3,280.9M
AMD 80.19 37,767.2K – 8.95 3,028.6M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
TME 18.22/21.00 stock options/call 136.09 375.5M
ORCL 76.67/77.50 stock options/put 99.64 1,007.6M
AGI 8.47/7.50 stock options/call 99.62 27.7M
GC 1,735.50 – 1,747.40 gold futures 1,000 174.0M
CL 60.05 – 60.30 crude oil futures 1,250 75.1M

OUR PICK – A revisit to Crude Oil

Remain bearish below $61.50/bl. In early April we picked Crude, as we observed selling pressure below $62.00/bl (read here) and our sell limit was filled. Today, price advanced further to $61/bl on news that China crude imports rose 21% YoY and Dollar weakness. We see this news was reflecting the past and markets is simply repricing the black gold as the rise from $60 to $61 was not accompanied by rising money flows. With refineries maintenance season is around the corner, where purchases slowed, plus the new demand concerns amid J&J vaccination pause; we remain bearish as long as price closed below $61.50 – monthly pivot.

 

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 62.00 57.80 56.80
Medium-Term Sell 62.00 56.80 55.00
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.