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Stocks On Dead Cat Bounce Ahead of FOMC

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STATE OF THE MARKETS

Stocks on dead cat bounce ahead of FOMC. US stocks attempted to bounce back from Monday’s losses, with Dow (-0.15%), Nasdaq (+0.22%) and S&P (-0.08%) trying to rally three times, but finished mixed on Tuesday. Treasuries yields nudged higher as bond prices fell in anticipation of the Fed’s tapering statement on Wednesday. The 10Y benchmark closed at 1.33% as the Dollar Index closed around the 93.20 mark.

In the commodities market, crude was little changed on Tuesday but rebound to $71.25/bl at writing as traders expect EIA to report further reduction in US inventories. Gold continued it’s second day advance on risk aversion buying and settled around $1,774.25/oz as New York closed.

In the FX space, short term traders ditched Euro and Dollar in favor of Loonie and Sterling as speculation abound that Fed’s might change nothing in FOMC tomorrow. Sentiments in the medium to long term accounts were little changed. EIA energy reports and FOMC will be in the spotlight Wednesday.


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G8 CURRENCIES SENTIMENTS

ST CHF JPY CAD GBP EUR USD AUD NZD ST
MT JPY USD CHF EUR CAD GBP AUD 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
RWLK 2.59 + 99.23 319,751.9K 467.1K
SQQQ 8.13 – 0.25 116,117.1K 78,782.0K
LCID 26.81 + 11.38 114,488.0K 15,923.4K
UBER 44.36 + 11.49 106,603.3K 21,549.7K
NNVC 6.19 + 63.32 100,832.0K 696.7K
SPY 433.63 – 0.09 92,444.3K 64,424.2K
CEI 1.60 + 3.23 89,576.0K 47,147.5K
CRVS 8.53 + 38.25 85,075.2K 3,905.1K
AAPL 143.43 + 0.34 75,803.6K 78,904.2K
UVXY 25.86 – 5.31 72,877.9K 25,420.0K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 739.38 16,323.7K – 4.44 12,069.5M
AAPL 143.43 75,803.6K – 7.88 10,872.5M
AMZN 3,343.63 2,779.6K – 4.87 9,294.0M
MSFT 294.80 22,354.2K + 2.00 6,590.0M
UBER 44.36 106,603.3K + 268.73 4,728.9M
NVDA 212.46 20,460.8K – 17.28 4,347.1M
FB 357.48 11,746.8K – 5.96 4,199.2M
MRNA 434.04 9,350.9K – 33.16 4,058.7M
DIS 171.17 23,198.8K + 194.23 3,970.9M
AMD 102.82 35,471.7K – 16.74 3,647.2M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE / STRIKE TYPE VOL/OI FUNDS FLOW $
INDI 11.52 / 15.00 stock options/call 110.69 69.0M
LCID 26.81 / 28.00 stock options/call 84.36 3,007.7M
6E 1.1741 FX futures/EURUSD 170 20.0M
ZF/N/B-UB 123.1250 – 199.0200 US bond futures 28,172 382,397.9M
CL 59.41 – 70.00 crude oil futures 1,100 75.0M


OUR PICK – No New Stock Pick

No new stock picks as we are at maximum equities exposure. Recent rout in the stock market bode well for our shorts in GE, although not so much in other longs. Currently we are holding 8 stocks – 7 longs and 1 short – and have approached maximum equities exposure. We are long AUY with dividends yielding 2.94%, T at 7.72% yields and COG yielding 2.32%.

CLVS is currently 21% overvalued with -7.19 z-score but trading central projects a rebound towards 5.62-5.87 where we will most likely close our positions.

We remain bullish with VIPS (43% undervalued with 5.59 z-score), GT (47% undervalued with 1.28 z-score) and CRON (16% undervalued with 9.18 z-score) while bearish GE (25% overvalued with 1.36 z-score). Feds may inspire rebound on Wednesday, but Monday’s volume signaled further downside before institutional investors step back in.

Join us at MFM’s TradeCopy

HORIZON STRATEGY SL TP1 TP2
Short-Term
Medium-Term
Long-Term

Note: If you require fundamental reports for the above stocks, please contact your account manager or [email protected] for a copy.

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.