STATE OF THE MARKETS
Stocks climb higher as fears subside. US stocks climbed higher on Wednesday, with Dow (+0.83%), Nasdaq (+0.92%), and S&P (+0.82%) , including Russell (+1.81%) pared last week’s losses, after more positive earnings results were reported from Dow member companies. Bond prices continue to fall, sending yields higher, with the 10Y benchmark now back in the 1.30% mark.
In the commodities market, crude futures staged further rally from dip buyers, settling price above $70.30/bl as New York closed; even though US crude inventories reported an unexpected rise of 2.1 million barrels last week. Gold pulled back further as risk appetite improves and higher yields attract more investors to the US bonds. The yellow metal settled around $1,803.30/oz as New York closed.
In the FX space, risk-off remains on the cards for medium to long term accounts as Yen, Dollar and Swiss led the demand while the comdolls, Euro and Sterling were offered. Short term traders seemed to take advantage of the oversold high beta currencies, to bid the bargains and offer more Dollars and Yen. ECB meeting Thursday may remain as dovish as expected, while US jobless claims would give clues to the employment sector of the US economy.
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 $|
|PBR||10.70 / 11.50||stock options/call||93.50||231.4M|
|CEMI||5.34 / 15.00||stock options/call||62.46||2,117.1M|
|ZN-T||110.0838 – 134.2250||US bond futures||22,186||283,138.4M|
|CL||64.80||crude oil futures||400||25.9M|
OUR PICK – No New Pick
No new pick as we had three losses in a row. Losses is part of the game that even professionals have to embrace. No exceptions. Our strategy remains intact but sudden change in market dynamics is not something we sometimes can foresee in advance. That’s why we had losses in AUD/CHF, XAG/USD, EUR/USD, USD/CAD and more recently AUD/CAD. These losses happened in a row and as part of our risk management strategy, we would not have any new picks until after the next NFP in August.
Trades updates: We will continue to accumulate AUY as the stock now pays dividends yielding 2.50% at current price, we remain bullish T and will accumulate as dividends yields now at 7.46%, we remain bullish COG and will accumulate as dividends yields now at 2.72%, we remain bullish CLVS, VIPS while bearish GPRO, APA, and GE. XAG/USD, EUR/USD and AUD/CAD were stopped out. (Note: APA pays 0.54% while GE’s dividend yield is at 0.31% and CLVS, VIPS and GPRO currently does not pay any dividends)
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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.