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Risk-Off Fueled Dollar Rally

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STATE OF THE MARKETS

Risk-off fueled Dollar rally. Global equities were rattled Monday after news hit the wires that China’s Evergrande might default on billions of debt that could spill over in global bond holdings. Major Index from Nikkei (-1.81%), HangSeng (-0.32%), FTSE100 (-0.86%) to Dow (-1.78%), S&P (-1.70%) and Nasdaq (-2.19%) all ended in red after buyers were spooked ahead of Fed’s FOMC statement on Wednesday. Dollar rallied close to the 92.50 minor handle as the 10Y benchmark fell to 1.31% at New York close.

In the commodities market, crude fell for the third day, but remained above $70/bl, after Dollar’s strength pulled the commodity down. Fears can be sensed in the markets as gold rebound on safe-haven buying and the precious metal closed above $1,760/oz despite heavy demand for King Dollar.

In the FX space, fears sent Yen and Swiss safe-haven ahead in demand next to King Dollar, while the comdolls and Sterling were offered in the short and medium term accounts. Long term saw more demand for Yen alongside Kiwi, Aussie and Euro. The FOMC meeting begins Tuesday before press statement on Wednesday.


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G8 CURRENCIES SENTIMENTS

ST JPY CHF USD EUR AUD NZD CAD GBP ST
MT JPY USD CHF EUR CAD AUD GBP NZD MT
LT NZD AUD JPY EUR GBP USD CAD CHF 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
SPY 434.04 – 1.67 166,445.5K 64,072.7K
EDSA 11.92 + 102.72 161,206.1K 116.4K
SQQQ 8.15 + 6.12 159,643.1K 78,808.8K
CEI 1.55 – 8.29 144,873.7K 45,614.1K
F 12.82 – 5.39 126,152.2K 73,159.1K
AAPL 142.94 – 2.14 123,478.8K 78,778.6K
ZIVO 4.66 + 66.43 120,563.7K 360.6K
UVXY 27.31 + 16.31 104,580.6K 24,544.2K
VXX 29.74 + 10.93 101,854.8K 27,305.5K
SDC 6.49 – 3.13 97,128.4K 9,781.6K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 730.17 24,757.6K + 43.28 18,077.3M
AAPL 142.94 123,478.8K + 51.49 17,650.1M
AMZN 3,355.73 4,669.1K + 58.47 15,668.2M
MSFT 294.30 38,278.6K + 74.47 11,265.4M
NVDA 211.13 34,944.0K + 31.41 7,377.7M
FB 355.70 19,822.7K + 59.20 7,050.9M
GOOGL 2,774.39 2,325.9K + 78.95 6,453.0M
BABA 151.49 36,177.4K + 24.31 5,480.5M
MRNA 423.33 12,929.3K – 9.66 5,473.4M
GOOG 2,780.34 1,745.8K + 57.86 4,853.9M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE / STRIKE TYPE VOL/OI FUNDS FLOW $
AAPL 142.94 / 143.00 stock options/call 62.38 17,650.1M
CLF 19.75 / 20.00 stock options/call 53.95 903.4M
FB 355.70 / 350.00 stock options/call 42.65 7,050.9M
GME 192.20 / 170.00 stock options/put 40.48 757.6M
CL 64.38 – 71.10 crude oil futures 1,297 89.2M


OUR PICK – EUR/CAD

Trading the range. EUR/CAD has been in the range of 1.51 – 1.46 for the past three months and currently on the upside momentum. Yields obviously favor the Loonie but yield is not the only factor that moves currencies. Recent ECB’s so-called “recalibration” of its bond purchases (aka tapering) provides momentum for the Euro. We expect further upside for the short and medium term before long term sellers step in to short for yields.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 1.4920 1.5050 1.5100
Medium-Term Buy 1.4920 1.5100 1.5170
Long-Term Sell @ 1.5150/70 1.5200 1.4900 1.4750

 

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.