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Dollar Stalled As FOMC Looms

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STATE OF THE MARKETS

Dollar stalled as FOMC looms. US stocks closed in the green while the Dollar stalled as the FOMC started on Tuesday. Dow (+0.20%), Nasdaq (+0.22%) and S&P (+0.48%), including Russell (+0.84%) eked minor gains as Dollar stalled at the 103.50 minor handle. Treasury yields continue to climb higher with inversion between 5Y (3.03%), 7Y (3.04%) and the 10Y (2.98%) and 30Y (3.02%) remains.

In the commodities market, Dollar strength weighs on crude and pushes the black gold to close lower at around $102.55/bl. Inflation concerns continued to send bids to gold as the yellow metal rebounded off the $1,850.30/oz mark and settled higher around $1,867.75/oz as New York closed. Elsewhere, iron ore stalled at $144/tn waiting for fresh catalyst to the next move.

In the FX space, short term traders seem to leveraged on the oversold conditions in Aussie, Loonie and Kiwi to bid the comdolls trio into demand while sending Yen into the offer territories. Overall sentiments seemed more bullish for Euro and bearish for Sterling, suggesting EUR/GBP to advance further. 

On Wednesday, we expect markets to remain cautious ahead of the FOMC meeting, but look forward to seeing earning reports from Uber Tech (UBER), Barrick Gold (GOLD), Bookings (BKNG), eBay (EBAY), Apache Corp (APA), CVS Health (CVS), Marriot (MAR) and Allstate (ALL) as well as the latest ADP figures on the US labor markets, PMI and ISM indexes and the very much awaited FOMC rate decision. EIA petroleum status reports will  be in the spotlight for energy traders.


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G8 CURRENCIES SENTIMENTS

ST AUD CAD NZD USD EUR JPY CHF GBP ST
MT USD CAD AUD EUR JPY GBP CHF NZD MT
LT USD CAD EUR CHF GBP AUD JPY NZD 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
TQQQ 38.34 + 0.24 142,485.1K 114,910.4K
AMD 91.13 + 1.44 125,462.4K 95,145.6K
SQQQ 46.53 – 0.24 118,990.0K 83,861.2K
SPY 416.38 + 0.46 99,922.1K 106,386.5K
AAPL 159.48 + 0.96 88,916.5K 91,456.8K
UVXY 16.31 – 8.58 78,608.5K 79,805.9K
QQQ 318.82 + 0.11 77,906.9K 76,658.6K
XLF 34.97 + 1.30 73,880.6K 69,656.9K
T 19.33 + 1.10 62,644.4K 68,482.5K
SNOA 3.50 + 31.55 58,630.4K 112.1K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 909.25 21,193.8K – 16.56 19,270.5M
AAPL 159.48 88,916.5K + 1.94 14,180.4M
AMD 91.13 125,462.4K + 44.14 11,433.4M
AMZN 2,485.07 3,952.4K – 0.31 9,822.0M
NVDA 196.02 47,503.4K – 15.53 9,311.6M
FB 212.03 41,527.5K + 15.98 8,805.1M
MSFT 281.78 25,965.6K – 18.48 7,316.6M
XOM 88.19 33,896.7K + 26.41 2,989.4M
GOOGL 2,346.68 1,245.6K – 35.27 2,923.0M
GOOG 2,362.59 1,059.8K – 26.12 2,503.9M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE TYPE R/VOL FUNDS FLOW $
UBER 29.47 equities/options 132.17 1,620.2M
CHPT 13.48 equities/options 105.81 93.0M
INVZ 4.71 equities/options 90.04 26.1M
ZS 1,630.40s soybean futures 70,754 115.4M
ZC 793.00 corn futures 118,006 93.6M


OUR PICK – Yamana Gold (AUY, NYSE)

Scale in on pullback. Some investors argue that gold does not pay dividend, thus no yields; but this is not true for gold stocks. Yamana recently announced a 3 cents dividend with June 29th ex-date and payable on July 14th making a yield of 2.26%. Currently 20% undervalued according to S&P GMI, we decided to scale in on pullback as we look forward to the stock reaching its fair value. Risk to the downside remains, however, especially if Fed hikes more than anticipated.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 5.10 5.70 5.90
Medium-Term Buy 5.10 5.90 6.10
Long-Term Buy 5.10 6.10 6.50

Note: Please contact your account manager if you need a copy of fundamental reports on this stock.

Risk Disclaimer:

This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. 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.