STATE OF THE MARKETS
Strong earnings boosted stocks up. US stocks received another upside boost after Bank of America reported that 66% of the companies reporting earnings so far have beaten their estimates. Dow (+0.56%), S&P (+0.74%), Nasdaq (+0.71%) and Russell (+0.36%), all sectors in the green with utilities, IT and healthcare leading the gains. Dollar (DXY) was sold off to as low as the 93.50 mark before bidders emerged to close it above 93.80, but the index remains under pressure at writing as risk appetite returns. The 10Y yields benchmark soared to 165 basis points, the highest in five months.
In the commodities market, crude continues its upward trajectory as China reported colder weather that may result in increased demand. The black gold settled near $83/bl as New York closed. Gold remains supported as more than $39m worth of block orders flocked the futures market. Iron ore was little changed, trading in the $123/tn the figure amid staggered production in China.
In the FX space, Yen was seen synching across all horizons, while Kiwi, Aussie, Sterling, Swiss and Dollar were synching across short and medium term accounts. Investors are apparently repositioning themselves as risk appetite in the new quarter is gaining momentum. Sentiments were highly bullish in the short and medium term as the safe haven trios were sent to offers. Markets look for earning reports from Tesla (TSLA), Verizon (VZ), Anthem (ANTM) and Las Vegas Sands (LVS) on Wednesday to gauge Covid impact in the third quarter. EIA crude inventories will be in the spotlight for oil traders.
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||10.34 / 11.00||stock options/call||160.03||531.5M|
|CONE||77.22 / 90.00||stock options/call||123.85||51.5M|
|GC||1,768.00 – 1,780.40||gold futures||225||39.8M|
|CL||80.60 – 82.60||crude oil futures||5,014||409.0M|
OUR PICK – No New Stock Pick
No new stock picks as we are at maximum equities exposure. Currently we are holding 8 stocks – 7 longs and 1 short. We are long AUY (20% undervalued) with dividends yielding 2.80%, T (18% undervalued) at 8.13% yields and COG (CTRA) (15% undervalued) yielding 2.11%. CLVS is currently 22% overvalued with -7.19 z-score but Tudor Investment had stepped in recently and we decided to hold. We remain bullish with VIPS (44% undervalued with 5.59 z-score), GT (47% undervalued with 1.28 z-score) and CRON (17% undervalued with 9.18 z-score) while bearish GE (25% overvalued with 1.36 z-score).
For high probability stock picks, please use our Trading Central services.
Note: Cabot Oil & Gas (COG) recently merged with Cimarex Energy to form Coterra Energy (CTRA).
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.