STATE OF THE MARKETS
Markets mixed amid weaker economic data. Major global equities indexes, except Nikkei (+0.31%), closed weaker on Tuesday after reports of slight decline in US consumer confidence and falling new home sales. Dow (-0.24%), S&P (-0.23%) and FTSE (-0.11%) failed to make new highs, while the Dollar fell and gold rose as crude went sideways, signaling mixed markets. US bonds saw more demand, sending yields lower with the 10Y benchmark registering 1.56%.
Crude was trading sideways, within the $65.50/40 band, as markets continue to assess the impact of Iran’s new supplies should the nuclear deal be revived. Easing yields and falling consumer confidence pushed gold higher, breaking the $1,900 barrier for the first time in 20 weeks.
Safe haven flows were noted in the FX markets, as Swiss regained further ground in the demand territories, with Euro, Kiwi and Loonie; as long term investors sought yields to offset inflation. Loonie and Sterling, however, were seen on offers in the short to medium term accounts. Aussie and King Dollar seemed to be in a tug of war across all horizons as gold continued to advance.
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 $|
|GM||56.76 / 57.50||stock options/put||98.17||58.6M|
|NKLA||12.32 / 13.00||stock options/call||79.09||3,517.3M|
|VLDR||10.52 / 12.50||stock options/call||74.55||139.9M|
|6L||0.1869 – 0.1886||FX futures/BRLUSD||10,436||195.9M|
|CL||59.30 – 66.18||crude oil futures||4,235||270.0M|
OUR PICK – AUY (Yamana Gold, NYSE)
Yields is the name of the game. Earlier this month, we picked Yamana on earnings and dividends strength and right now the stocks seemed to be standing at the 61.8% junction. We have raised the long term stop to $5.00 and still see further demand for this stock as yields seeking investors continue to protect themselves against inflation. In the world of declining dividends due to the pandemic, Yamana did the opposite and has increased dividends for the past 10 quarters. With a strong balance sheet to fund expansions, S&P GMI sees 25% upside on this stock making it fairly valued around $6.50.
Note: If you require fundamental reports for this stock, please contact your account manager or [email protected] for a copy.
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.