Breaking

Risk-On Sent Dollar Lower

Views: 3235
0 0

STATE OF THE MARKETS

Risk-On sent Dollar lower. US stocks continue their upward trajectory, with Dow (+0.43%) and S&P (+0.37%) briefly traded at new record highs on Wednesday, as stronger than expected earnings continue to fuel the rally. Improved risk appetite sent Dollar and bonds lower, with the spot Dollar index falling to 93.50 handle while the 10Y yields soared to 167 basis points – the highest in five months.

In the commodities market, crude rallied past the $83/bl mark – a level not seen since October 2014, after EIA reported the lowest level of inventories in three years. Gold was under pressure, below $1790/oz, as yields rose and the yellow metal lost its anti-inflationary appeal. Iron ore was little changed, trading in the $123/tn the figure as China’s steel output fell recently.

In the FX space, the comdolls continue to lead demand by wide margin across horizons, though demand for safe-haven Swiss increased as investors hedged their risks. Short term traders seemed to be taking profits on their short Yen trades, after the BoJ stimulus announcement sent Yen pairs to rally recently. Markets look for jobless claims, home sales and earnings reports from American Airlines (AAL), AT&T (T), Dow (DOW), and Intel (INTC) on Thursday.


Become a provider, earn commission and invest with MFM’s PAMM and CopyTrades features!


G8 CURRENCIES SENTIMENTS

ST NZD AUD CAD CHF GBP EUR JPY USD ST
MT NZD AUD GBP CAD CHF EUR USD JPY MT
LT CAD AUD NZD CHF GBP USD EUR JPY 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
CEI 1.81 + 7.10 263,006.2K 141,044.4K
SESN 1.27 + 25.74 206,209.2K 17,361.4K
WISH 6.09 + 14.47 125,109.8K 57,134.0K
PINS 62.68 + 12.77 113,376.3K 9,802.8K
F 16.04 + 4.02 104,752.2K 63,652.5K
BBIG 6.38 – 17.99 85,140.9K 43,901.5K
SQQQ 7.43 + 0.13 73,704.4K 87,834.9K
PROG 2.72 – 9.33 71,627.5K 31,900.5K
AAPL 149.26 + 0.34 58,418.7K 79,724.7K
HX 18.87 + 98.42 57,597.9K 502.2K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 865.80 14,032.0K – 26.01 12,148.9M
AAPL 149.26 58,418.7K – 22.99 8,719.6M
PYPL 258.36 31,271.7K + 365.03 8,079.4M
AMZN 3,415.06 2,139.7K – 24.67 7,307.2M
PINS 62.68 113,376.3K + 825.92 7,106.4M
NFLX 625.14 10,621.9K + 129.21 6,640.2M
BABA 177.18 33,714.4K + 34.17 5,973.5M
MSFT 307.41 16,537.0K – 31.37 5,083.6M
FB 340.78 13,639.4K – 35.58 4,648.0M
NVAX 136.86 30,516.9K – 406.93 4,176.5M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE / STRIKE TYPE VOL/OI FUNDS FLOW $
RY 133.41 FX futures/EURJPY 360 42.1M
SI 24.1250 silver futures 25 3.0M
GC 1,780.50 gold futures 25 4.5M
ZF/N 121.2775 – 130.1950 US bond futures 11,134 143,044.1M
CL 80.83 – 83.40 crude oil futures 5,140 425.6M


OUR PICK – GOLD (XAU/USD)

Rising yields may cap the rise of the yellow metal. Recent bonds sell-off in anticipation of the Fed’s tapering and rate hike next year, sent bonds’ yields of various maturities higher than their coupon. The 10Y is now paying 1.65% versus 1.25% coupon, 5Y at 1.17% versus 0.875% coupon and the 2Y at 0.39% versus 0.25% coupon. The non-interest bearing gold might lose its appeal in light of rising yields. We also saw block selling orders at $1,790 levels, signaling pressure below the $1,800/oz mark.

HORIZON STRATEGY SL TP1 TP2
Short-Term Sell 1,801 1,775 1,755
Medium-Term Sell 1,801 1,755 1,730
Long-Term Flat

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.