STATE OF THE MARKETS
Stocks rebound but fears remain. US stocks rebound on Thursday after reports of improved employment sectors with less unemployment claims. Dow (+0.55%), Nasdaq (+1.77%), S&P (+1.06%) including Russell (+0.64%) edged higher but light volume was noted amid fears of rising inflation (costs), new tax structure and interest rates. The news saw bond demand return, sending 5Y (0.82%), 10Y (1.63%) and 30Y (2.34%) yields lower.
Crude futures continue to close lower for the third day in a row, below $62.10/bl, after reports of progress in the Iran nuclear deal. Reduced economic activities in Asia due to renewed lockdown, aggravate the selling pressure. Gold however, returned with firm bid as inflation worries continue to plague markets. The yellow metal settled higher, above $1,876.60/oz, as New York closed.
In the FX space, the remaining fears were confirmed after Swiss seized the helm of demand for short term accounts, while remained firm in the medium to long terms as Yen eases across the boards. Short term accounts also saw firmed bids on Aussie and Loonie, while long and medium terms still running on the back foot. Euro and Sterling remained in a tug of war as sentiments stalled.
G8 CURRENCIES SENTIMENTS
** ST refers to Short-Term daily turnover, MT is Medium Term weekly
and LT refers to Long-Term monthly turnover.
WALL ST MOST ACTIVE
|VOLUME||90 DAYS AVG|
** % Change here refer to price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume
TOP 5 BLOCK ORDERS
|SYMBOL||PRICE / STRIKE||TYPE||VOL/OI||FUNDS FLOW $|
|BHC||31.55 / 31.00||stock options/put||109.36||135.8M|
|GPS||32.58 / 32.50||stock options/call||69.89||324.0M|
|AMD||78.06 / 77.50||stock options/call||60.04||3,835.5M|
|ZN||132.1500||US bond futures||8,400||111,006.0M|
|CL||56.54 – 62.95||crude oil futures||4,750||287.8M|
OUR PICK – No New Picks
No new picks going into the weekend. Stocks rebound today is somewhat expected as short term technical traders bid the markets, but the rally still does not convince us of another leg higher as Dow bulls still need to overtake 34,500 while S&P at 4,185 points. Even then, there is still a challenge to defeat the monthly top. If our calculations are correct and depend on where markets are going to close for the week; then Nasdaq might still see another rally next week before another bumpy ride as long term investors continue to take profits off the table. The last three weeks fall in the tech laden Nasdaq, saw heavy bidding in defensive sectors and low beta stocks which signaled that long term investors are preparing for the worst. Continuous net outflows of equities and higher inflows to short term money markets for the past five weeks confirmed this thesis.
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.