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Stocks Mixed As Sectors Rotation Continue

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STATE OF THE MARKETS

Stocks mixed as sectors rotation continue. US stocks closed mixed on Wednesday, after Treasury Yellen clarified her remarks on rates hike. Tech Nasdaq (-0.37%) and small cap Russell (-0.31%) dipped deeper, while blue chips Dow (+0.29%) and S&P (+0.07%) climbed higher as investors continue to rotate out of technology to cyclicals sectors. Flight to bonds safety was noted as the 10Y benchmark yielded lower to 1.58% as New York closed.

Crude futures jumped to as high as $66.75/bl after EIA reported significant reduction in US crude inventories, before settled lower, below $65.15/bl; after investors took profits off the table prior to NFP Friday. As of this writing, gold regained earlier losses, continue to climb and test the $1,800/oz amid continued concerns on rising inflation and weaker Dollar.

Dollar rally was stalled after services PMI and ADP employment reported a disappointing figures, that benefits the Comdolls and Sterling for the short term. King Dollar advanced further in the demand territories for the medium and long term accounts, as investors continue profit taking activities in Euro, Aussie and Sterling ahead of the BoE rate decision on Thursday and NFP Friday. Yen was noticed to be synching across horizon as China and Japan re-opens post holiday. Long term remains bearish for growth as investors continue to be on defense.


G8 CURRENCIES SENTIMENTS

ST NZD AUD CAD GBP USD JPY CHF EUR ST
MT CAD USD GBP CHF NZD JPY AUD EUR MT
LT CHF CAD NZD EUR AUD JPY USD GBP LT
** ST refers to Short-Term daily turnover, MT is Medium Term weekly 
and LT refers to Long-Term monthly turnover.

WALL ST MOST ACTIVE

TICKER LAST PRICE

% CHANGE

VOLUME 90 DAYS AVG
ATNX 4.55 + 22.64 217,706.0K 2,502.1K
IBIO 1.48 + 14.73 54,192.4K 11,477.7K
COCP 1.47 – 31.31 115,909.7K 9,310.7K
CHMA 3.98 + 40.14 106,223.6K 1,554.6K
OCGN 10.91 – 12.79 95,557.6K 82,628.0K
UVXY 4.47 – 3.62 53,901.3K 82,111.8K
RHE 19.49 + 96.27 55,296.2K 2,215.3K
PTON 82.62 – 14.56 84,895.8K 8,201.8K
AAPL 128.10 + 0.20 83,866.8K 104,585.1K
F 11.61 + 1.75 41,258.9K 75,129.5K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 670.94 21,852.2K – 30.07 14,674.5M
AMZN 3,270.54 3,706.2K – 6.83 12,144.5M
AAPL 128.10 83,866.8K – 9.63 10,762.1M
PTON 82.62 84,895.8K + 541.57 7,013.2M
MSFT 246.47 21,907.1K – 17.38 5,396.8M
FB 315.02 15,571.7K – 20.83 4,907.8M
NVDA 578.34 7,301.0K – 11.73 4,220.3M
AMD 77.83 42,256.9K – 16.74 3,293.3M
GOOGL 2,314.77 1,331.0K – 18.57 3,083.5M
MRNA 162.84 18,912.8K + 61.49 3,078.3M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
EQT 20.18/25.00 stock options/call 368.76 73.5M
UBER 51.18/51.50 stock options/call 171.94 1,444.9M
BA 228.18/220.00 stock options/call 112.61 1,948.4M
GC 1,780.00 – 1,783.50 gold futures 80 14.3M
CL 65.71 crude oil futures 112 7.4M

OUR PICK – XAU/USD

On last leg up before yields have to rise. Rising concerns on inflation has triggered longs in precious metal complex in the last five weeks and we see another leg up, the last one probably, amid Feds that played down inflationary concerns. Obviously markets was not buying the mantra, as gold and silver went up and yields went down. At some point however, Feds has to admit, as have been nudged by Kaplan and recently Yellen; that rates can’t stay low forever. This summer meeting in June would be the the stage where markets expect yields to rise as bonds were dumped amid rising inflation. Investors are not willing to lend the money if bonds can’t beat inflation.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 1,770 1,805 1,815
Medium-Term Buy 1,770 1,815 1,825
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.