Breaking

Stocks Rout As Investors Cashed Out

Views: 32
0 0

STATE OF THE MARKETS

Stocks rout as investors cashed out. US stocks plummeted on Thursday, erasing Wednesday’s relief rally, after long term (LT) investors continued to sell on the rip; cashing out their long term holdings amid fear of a coming US recession. Nasdaq (-4.99%) was the worst hit, followed by Russell (-4.04%), S&P (-3.56%) and Dow (-3.12%).

Bonds lost bids, sending yields higher across the board, with the inversions between 7Y (3.06%) and 10Y (3.03%) remains. Demand for cash was high, sending the Dollar index back above 103.50 minor handle as long term investors cashed out.

In the commodities market, crude continued to climb  as high as $110.30/bl before settling around $107.55/bl, as the European Union geared up to replace Russian oil by the end of the year. Fear of recession sent gold to as high as $1,909.65/oz before settling around $1,876.90/oz as bidders stepped in. Elsewhere, iron ore continues to drag lower as investors’ worries on demand growth return. The commodity settled around $142.90/tn as New York closed.

In the FX space, King Dollar reign continues in the medium and long term accounts alongside Loonie, Aussie and Euro. Short term traders were seen quick in bidding Aussie and Euro on the pullback. Overall sentiments turned more bearish as Yen advanced further in the demand territories, while Swiss has outpaced Yen in the long term accounts.

On Friday, markets continue to weigh the war in Ukraine while looking forward to seeing earning reports from Goodyear Tire (GT), Cigna (CI), DraftKings (DKNG), Under Armour (UA), Arbor Realty (ABR) and Century Casino (CNTY) as well as the very much awaited NFP reports.


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


G8 CURRENCIES SENTIMENTS

ST AUD EUR USD JPY CAD NZD CHF GBP ST
MT USD CAD AUD EUR JPY GBP CHF NZD MT
LT USD CAD AUD EUR CHF GBP NZD 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
TQQQ 35.86 – 14.90 227,340.3K 117,220.6K
SQQQ 47.95 + 14.74 175,028.7K 86,455.9K
SPY 413.81 – 3.55 172,694.1K 107,819.2K
QQQ 313.00 – 5.04 154,324.3K 78,076.7K
AMD 93.87 – 5.58 153,000.7K 97,992.3K
UVXY 17.76 + 26.32 131,938.3K 80,897.6K
AAPL 156.77 – 5.57 130,299.1K 91,864.9K
BTTX 2.34 + 7.83 122,178.8K 1,641.1K
XLF 34.99 – 2.91 101,088.1K 70,467.2K
NIO 15.38 – 15.17 95,651.6K 66,752.0K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 873.28 30,692.7K + 20.49 26,803.3M
AAPL 156.77 130,299.1K + 43.13 20,427.0M
AMZN 2,328.14 7,207.8K + 68.80 16,780.8M
AMD 93.87 153,000.7K + 58.11 14,362.2M
MSFT 277.35 43,227.4K + 32.88 11,989.1M
NVDA 188.44 62,557.1K + 9.92 11,788.3M
FB 208.28 41,100.1K + 11.10 8,560.3M
GOOGL 2,330.11 2,288.2K + 12.78 5,331.8M
GOOG 2,334.93 2,152.8K + 41.79 5,026.6M
SHOP 413.09 11,351.6K + 177.32 4,689.2M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE TYPE R/VOL FUNDS FLOW $
ABBV 152.18 equities/options 101.22 1,045.3M
NKLA 7.66 equities/options 96.98 198.5M
CHPT 13.18 equities/options 74.25 104.0M
ZS 1,647.00 soybean futures 75,601 124.5M
YM 32,930 DOW futures 2,766 94.1M


OUR PICK – No New Pick

No new pick going into the weekend. Money flow trend of late is outflow of equity, outflow of bonds and inflow to short term money markets. This week another $2 billion drain of equity, $7.5b out of taxable bonds and close to $1b going into short term money markets. It seems that investors are reluctant to commit for the long term as fear of recession remains. Plenty of cash are sitting around waiting for the right time to be deployed.

Trades updates:  

Equities: AUY (19% undervalued, 2.21% yields) is on wave 4 pullback and we expect to meet the final target in the coming weeks. We remain bullish CTRA (COG) (20% undervalued, 1.88% yields) and maintained target at $35.30, we believe T (20% undervalued, 5.56% yields) has found a bottom and looking to close the gap, VIPS (37% undervalued with 4.78 z-score) remained well bid after UBS maintain neutral rating but reduced target by 10 cents, CRON (21% undervalued with 27.69 z-score), WBA (28% undervalued, 4.36% yields) had pulled back further to $42 and we remained bullish, and M (44% undervalued, 2.64% yields).

FX & Commodities: Silver may have found a bottom, Crude has reached short term TP2 and stop updated to $99/bl with new targets,

For more high probability picks, please use our Trading Central services. You could also join us at MFM’s TradeCopy

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

 

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.