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Major Bourses Turned Sour Post Feds

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STATE OF THE MARKETS

Major bourses turned sour post Feds. Major indexes in the likes of Dow (-0.62%), S&P (-0.04%), FTSE (-0.44%) and TSX (-0.43%) closed lower on Thursday as investors rally to profit taking after Feds announced an earlier than expected rate hike on Wednesday. Speculators were seen reducing bearish Dollar bets as Dollar (DXY) rallied to the 92 mark. A run to US bond’s safety saw the 10Y yield opened at 1.59% and dipped to as low as 1.47% before settled around 1.51%

Dollar strength continued to push crude lower, as low as $69.77/bl, before settling around $ 71.04/bl as New York closed. Gold dived deeper into the red, before settling around $1,773.31/bl, after dealers stepped in to bid.

In the FX space, Yen rally has started supporting Dollar in the medium to long term while offering Aussie, Kiwi and Euro the most. Loonie and Swiss were mostly on offers, while Sterling remained on bids synching across horizons. As equities are most likely under selling pressure in the coming weeks, currency markets will be more volatile than usual as investors rotate, rebalance and cashing out of sectors.

 


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G8 CURRENCIES SENTIMENTS

ST JPY USD GBP NZD CAD AUD EUR CHF ST
MT USD JPY GBP CAD EUR NZD AUD CHF MT
LT USD JPY GBP CHF CAD EUR AUD NZD 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
AMC 60.73 + 10.06 302,589.7K 145,772.0K
F 14.77 – 1.66 126,494.8K 77,307.5K
MTP 2.95 + 44.61 119,580.8K 353.8K
SQQQ 9.95 – 3.86 102,545.6K 89,075.4K
XLF 36.10 – 2.96 97,598.5K 55,861.6K
AAPL 131.79 + 1.26 96,641.4K 94,492.1K
ORPH 14.56 – 10.18 93,843.5K 2,828.3K
BAC 39.80 – 4.37 80,691.1K 49,218.4K
APOP 4.15 + 26.91 78,787.2K 1,574.0K
SPY 421.97 – 0.03 90,897.3K 78,291.8K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
AMC 60.73 302,589.7K – 8.47 18,376.3M
AMZN 3,489.24 5,125.8K + 78.30 17,885.1M
NVDA 746.29 20,179.1K + 69.76 15,059.5M
TSLA 616.60 22,670.6K – 5.74 13,978.7M
AAPL 131.79 96,641.4K + 31.73 12,736.4M
MSFT 260.90 27,554.6K + 26.55 7,189.0M
AMD 84.56 77,704.9K + 118.71 6,570.7M
FB 336.51 17,787.4K + 21.14 5,985.6M
SHOP 1,449.27 3,142.9K + 149.87 4,554.9M
JPM 151.76 29,698.0K + 113.02 4,507.0M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE / STRIKE TYPE VOL/OI FUNDS FLOW $
BPOP 74.33 / 70.00 stock options/put 100.05 89.7M
NVDA 746.29 / 740.00 stock options/put 88.55 15,105.9M
NIO 47.36 / 53.00 stock options/call 62.12 3,073.5M
ZN/TN 131.2300 – 145.2900 US bond futures 9,791 134,814.3M
CL 58.28 – 71.90 crude oil futures 3,647 256.1M

OUR PICK – No New Pick

No new picks going into the weekend. At last, the Feds agreed with the markets that interest rates need to be adjusted sooner than later in order to tame inflation. Fed’s dot plot now pointed to two hikes in 2023 and at least one next year. With that in sight, we would not be surprised if tapering bond purchases would come in the coming quarters, so yields can be adjusted to reflect coming new rates in 2022 and 2023. This is consistent with the trend of capital outflows from the equities market for the past few months. Speculative investors running on leverage are now cashing out to avoid higher rates moving forward. We believe a great opportunity is lurking for cash rich investors to get into the markets and snap valued assets at a bargain.

Trades updates:  We have closed MO, we will continue to accumulate AUY as the stock now pays dividends yielding 2.35% at current price, AUD/USD and EUR/USD have reached all targets, we remain bullish T and will accumulate as dividends yields now at 7.24%, we remain bearish AUD/NZD, short-term USD/JPY has reached both targets and have cancelled medium term short order, short term EUR/JPY has reached all targets and we have open TP to let profits run for now, and we remain bullish CLVS.

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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.