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Bulls Took A Breather Amid Profit Taking

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STATE OF THE MARKETS

Bulls took a breather amid profit taking. US stocks took a breather Monday after making all time high last week, as long term investors were seen cashing some chips across the boards. Dow (-0.36%), Nasdaq (-0.98%), S&P (-0.53%) and Russell (-1.36%) all edged lower as bonds and Dollar were sold off.  The benchmark US 10Y yield climbed back to 1.61% amid falling price as demand subsided.

Crude continued its upward trajectory to $64/bl on weaker Dollar, despite heavy selling pressure in the $63.20/50 region as speculators bet on demand concerns due to rising and re-emergence of a new Covid wave. Gold closed the day lower, below $1,770/oz as short tern traders took profit on the last two week rally after inflation fears sent the precious metal higher.

In the FX space, Dollar sell-off continued for the third consecutive week, with the Dollar index (DXY) breaking 91 mark as of this writing, mostly to the benefits of Sterling, Kiwi and Aussie. Investors remain cautious as Swiss and Yen are still in demand across the board. Sterling managed to overbid Euro in the short and medium term, though long term remains in favor of Euro.


G8 CURRENCIES SENTIMENTS

ST GBP NZD JPY EUR CHF AUD USD CAD ST
MT NZD AUD GBP JPY EUR CHF CAD USD MT
LT CHF EUR GBP AUD NZD JPY CAD USD 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
CLOV 9.67 + 9.64 236,758.2K 18,394.3K
AMBO 2.45 + 33.15 178,958.3K 821.8K
NIO 36.78 + 1.91 92,190.7K 108,654.9K
VXX 10.17 + 3.67 82,833.1K 54,794.1K
UVXY 4.74 + 5.80 83,240.8K 77,196.7K
AAPL 134.84 + 0.51 94,264.2K 107,130.3K
SQQQ 10.86 + 2.84 79,882.9K 81,908.6K
SPY 415.21 – 0.49 78,498.5K 77,430.8K
CLNE 11.84 + 6.28 69,667.1K 8,477.1K
PBR 8.54 + 5.17 57,340.9K 34,211.9K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 714.63 39,686.2K + 17.82 28,360.9M
AAPL 134.84 94,264.2K + 2.74 12,710.6M
AMZN 3,372.01 2,725.4K – 13.39 9,190.1M
NVDA 614.47 10,110.4K + 16.73 6,212.5M
MSFT 258.74 23,209.2K – 15.48 6,005.2M
FB 302.24 14,553.5K – 23.04 4,398.7M
GOOGL 2,289.76 1,514.4K – 0.24 3,467.6M
NIO 36.78 92,190.7K + 4.14 3,390.8M
PTC 139.80 23,298.6K + 1,204.71 3,257.1M
AMD 81.11 39,115.4K – 6.82 3,172.7M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
CLOV 9.67/14.00 stock options/call 134.68 2,289.5M
TSLA 714.63/1,030.00 stock options/call 112.61 28,360.9M
DISCK 31.20/25.00 stock options/put 100.02 420.1M
AFL 53.56/57.50 stock options/call 86.30 178.4M
CL 63.20 – 63.49 crude oil futures 1,970 124.9M

OUR PICK – NZD/USD

Better fundamentals but limited upside on technical. Recent release of a better than expected NZ business PMI, plus a weaker Dollar has fueled Kiwi rally last week. Since the pair closed above 50% fibonacci retracement of Feb high to March/April low yesterday, circa 0.7204, we see further upside to test 61.8% is still on the card as affirmed by our FX sentiments index. Nevertheless, 0.7220/50 is also the breakout from February’s low, i.e, support turned resistance. We might see medium to long term traders back in the shorts to push the pair down further.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy @ 0.7200 0.7170 0.7230 0.7270
Medium-Term Sell @ 0.7270 0.7310 0.7180 0.7110
Long-Term Sell 0.7310 0.7110 Open

 

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.