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Markets Cautious As Equities Hit All Time High

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STATE OF THE MARKETS

Markets cautious as equities hit all time high. Major global equities indexes hit an all time high on Thursday as US and China data showed a global recovery is underway. Dow (+0.90%) breached 34,000 mark while S&P500 (+1.11%) on 4,170 points for the first time in history, as FTSE100 (+0.63%) and Nikkei (+0.40%) near their all time high. The benchmark US 10Y yield fell to the lowest in 5 weeks, circa 1.58%, as cautious investors run to the safety of bonds and precious metals.

Crude advanced higher to $63.50/bl as optimism returned that demand will overpower supply as global recovery picked-up. Speculators were seen on heavy shorts with more than $200 million worth of block orders, as price hit the $63 – 63.50 range. Concerns on rising inflation saw gold broke the $1,750 barrier and closed above $1762, the highest level in six weeks.

In the FX space, the cautious tone is evident as safe haven Swiss and Yen continue to dominate the demand territories, despite the jump in demand for Aussie and Kiwi. King Dollar retreated in the long and medium term accounts but seen in demand for the short term at the support of Loonie. Euro and Sterling remains in a tug of war as optimism returned, at least for now.


G8 CURRENCIES SENTIMENTS

ST NZD AUD JPY USD CHF GBP EUR CAD ST
MT NZD AUD EUR JPY CAD GBP CHF USD MT
LT CHF EUR JPY AUD USD NZD CAD GBP 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
BAC 38.74 – 2.86 118,128.9K 53,161.1K
NIO 35.66 – 3.67 100,437.4K 110,660.2K
AAPL 134.50 + 1.87 89,347.1K 106,941.0K
SQQQ 10.59 – 4.68 75,724.0K 81,238.4K
INO 9.01 + 1.92 71,187.6K 13,113.7K
PLUG 26.09 – 8.10 69,174.3K 39,031.0K
AMD 83.01 + 5.68 68,942.8K 42,450.7K
PPD 45.80 + 6.51 65,074.0K 970.6K
PLTR 23.15 – 2.32 58,849.3K 77,989.5K
SPY 415.87 + 1.07 60,229.8K 77,112.6K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 738.85 27,848.9K – 18.37 20,576.2M
AAPL 134.50 89,347.1K – 8.96 12,017.2M
AMZN 3,379.09 3,233.5K – 0.97 10,926.3M
NVDA 645.49 14,962.0K + 76.47 9,657.8M
MSFT 259.50 25,627.4K – 11.99 6,650.3M
AMD 83.01 68,942.8K + 62.89 5,722.9M
BAC 38.74 118,128.9K + 101.69 4,576.3M
FB 307.82 14,558.2K – 28.69 4,481.3M
NIO 35.66 100,437.4K + 13.95 3,581.6M
GOOGL 2,285.25 1,458.7K – 7.16 3,333.5M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
INO 9.01/11.00 stock options/call 131.89 641.4M
LAZR 18.06/15.00 stock options/put 127.57 136.2M
GC 1,755.00 – 1,767.20 gold futures 300 52.8M
ZN 132.1250 US bond futures 5,000 66,062.5M
CL 52.30 – 63.46 crude oil futures 9,980 616.6M

OUR PICK – No new pick

No new pick going into weekend. With cryptos becoming the new cash, asset rotation is no longer following the traditional model in our observation. Equities liquidation saw modest flows to bonds, precious metals and even cash, as most have flowed to Bitcoin and other cryptos as the new asset class. Categorize as currency at one point by CME, but now back to equity under alternative investment, Bitcoin will become as liquid as cash when investors can use it to pay for Tesla products at some point. That is why today, better than estimates economic data, before and in the future, may not translate much into higher cash index as investors have other channels for assets flow.

Trades updates: MRO remains active and stop remains at $11.80, Crude didn’t play out as we had expected but heavy selling interest was seen in the $63-63.50 range, EUR/JPY has reached medium term TP1 and we have exited our position, SIRI remains active, we have re-entered USD/CHF around 0.92 with new stop at 0.9170,  and we remain bullish APA

GODSpeed and have a wonderful 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.