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Dollar Lost Steam As Sentiments Stalled

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STATE OF THE MARKETS

Dollar lost steam as sentiments stalled. The past few days have seen US stocks went back and forth in a range trading, from all red to mixed to all green on Thursday. Dow (+0.93%), Nasdaq (+0.37%), S&P (+0.82%) including Russel was in the green , while Dollar fell as risk sentiments tracked by CNN Money Fear & Greed Index stalled at 61. The benchmark US10Y yield was relatively unchanged at 157 bps.

Crude futures closed lower for two days in a row, around $64.91/bl, after Saudi Arabia cut it’s crude selling price; signaling demand concerns in the aftermath of rising covid cases and death in India and Brazil. Gold continued its upward trajectory, broke the $1,800/oz barrier and settled above $1,815/oz amid falling treasuries yields.

Dollar rally lost steams after unemployment figures were mixed, sending jitters to Dollar bulls pre NFP Friday, benefitting the safe haven Swiss, Loonie and Kiwi as investors locked to hedging activities. Gold rally benefits the Aussie as it is synching across horizons. Sterling was seen on offers as investors waited for the Scottish election results, while Euro gained in demand in the short term accounts as investors waited for US NFP.


G8 CURRENCIES SENTIMENTS

ST CAD CHF EUR AUD NZD JPY USD GBP ST
MT CAD CHF USD AUD NZD GBP JPY EUR MT
LT CAD NZD CHF AUD EUR GBP JPY USD 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
MITO 1.62 + 35.00 204,241.4K 366.7K
LEDS 10.22 + 85.82 159,231.5K 668.2K
UVXY 4.42 – 1.12 102,512.5K 82,631.9K
PLTR 20.09 – 5.01 92,201.1K 73,170.0K
OCGN 9.58 – 12.19 83,460.5K 73,492.2K
SQQQ 11.52 – 2.21 80,781.8K 85,247.9K
UBER 46.65 – 8.85 79,242.3K 19,761.2K
AAPL 129.74 + 1.28 78,128.3K 104,538.2K
NIO 36.68 – 2.73 71,656.0K 101,508.8K
SPY 419.07 + 0.80 74,321.4K 78,121.8K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 663.54 27,784.6K – 11.71 18,436.2M
AMZN 3,306.37 4,447.6K + 9.35 14,705.4M
AAPL 129.74 78,128.3K – 15.47 10,136.4M
MSFT 249.73 26,491.0K – 0.59 6,615.6M
FB 320.02 19,012.2K – 2.92 6,084.3M
MRNA 160.50 29,662.3K + 128.82 4,760.8M
PYPL 252.02 17,998.7K + 152.01 4,536.0M
PTON 83.78 46,079.3K + 211.38 3,860.5M
UBER 46.65 79,242.3K + 277.10 3,696.6M
SQ 223.96 14,759.1K + 58.54 3,305.4M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE/STRIKE TYPE VOL/OI FUNDS FLOW $
TMUS 138.88/140.00 stock options/call 87.44 1,131.9M
HIMX 12.43/10.50 stock options/put 83.80 101.3M
CFX 42.74/40.00 stock options/put 77.63 108.7M
ZF 124.0850 US bond futures 8,600 106,713.1M
CL 64.22 – 65.23 crude oil futures 3,500 227.0M

OUR PICK – No New Pick

No new pick going into the weekend. Last week, we were talking about the bullish Dollar, signaled by the three white soldiers on the monthly and this week we saw two comments from Feds Kaplan and Treasury Yellen about the need for a rate hike soon. Though Yellen backed off and clarified in her remarks later, the damage has been done in our view. As far as technical is concerned, the trendline old school pointed to an uptrend in Dollar (DXY) as long as January low, circa 89.20, is defended. At this point, it is testing last week open; which is also the 61.8% fib retracement of January Low to March High. Will NFP save the Dollar this time? We shall see.

Trades updates: CRON didn’t get filled and we have cancelled the order, NIO has reached TP1 and closed, DBX was stopped out, KHC has reached TP2 and continue to advance as stop is raised to $41.50, AUD/CHF was stopped out, AUY works as planned as stop is raised to BE, and XAU/USD has reached TP2.

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.