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Stocks’ Rout Continues As Safe-Havens Kick In

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STATE OF THE MARKETS

Stocks’ rout continues as safe-havens kick in. US stocks continue to be sold on Monday after news of China slowdown gripped the market amid fear of a coming recession in the US and Europe. Nasdaq (-4.29%) was the worst hit, followed by Russell (-4.21%), S&P (-3.20%) and Dow (-1.99%). Safe-haven’s demand was high after bond yields reached multi-years highs, with the 10Y benchmark hitting 3.02% for the first time since November 2018. As at writing, inversion remains between the 7Y (3.04%) and 10Y (3.03%) by a basis point.

In the commodities market, China slowdown news dragged crude lower to close below $101.30/bl while gold lost bids as yields struck higher and the non-interest bearing metal settled around $1,853.80/oz as New York closed. Elsewhere, similar fate hit iron ore as the commodity reeled lower to $133.30/tn amid safe-haven flows.

In the FX space, demand for King Dollar pulled back in favor Yen, Euro and Sterling as Aussie and Kiwi were offered in the long term. Overall Sentiments were evidently bearish as the CNN fear and greed index fell to 20 from 32 last Thursday.

On Tuesday, markets are expected to be more cautious while looking forward to earning reports from Trade Desk (TTD), Coinbase (COIN), Occidental Petroleum (OXY), H&R Block (HRB), Electronics Arts (EA), Sony Group (SONY), Gladstone Land (LAND) and Unity Software (U) as well as the latest US small business index.


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G8 CURRENCIES SENTIMENTS

ST JPY EUR GBP USD CHF CAD NZD AUD ST
MT EUR USD JPY CAD AUD GBP NZD CHF MT
LT USD CAD EUR GBP JPY CHF AUD 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 30.52 – 11.82 210,209.9K 120,840.4K
PLTR 7.46 – 21.31 170,871.7K 48,089.6K
SQQQ 55.61 + 11.64 165,115.8K 90,128.2K
SPY 398.17 – 3.20 155,586.1K 110,270.5K
AMD 86.36 – 9.42 144,523.6K 100,052.5K
AAPL 152.06 – 3.32 131,577.9K 92,893.6K
UVXY 19.49 + 12.14 116,171.7K 83,073.1K
QQQ 297.15 – 3.91 113,387.3K 80,612.8K
XLF 33.91 – 2.39 85,922.8K 71,913.9K
ITUB 4.47 – 3.87 85,016.6K 46,714.7K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 787.11 30,270.0K + 16.56 23,825.8M
AAPL 152.06 131,577.9K + 37.46 20,007.7M
AMZN 2,175.78 6,406.2K + 38.77 13,938.5M
MSFT 264.58 47,725.9K + 40.29 12,627.3M
AMD 86.36 144,523.6K + 41.72 12,481.1M
NVDA 169.50 64,445.4K + 11.33 10,923.5M
FB 196.21 36,303.2K – 5.89 7,123.1M
GOOGL 2,250.22 2,040.1K – 2.94 4,590.7M
GOOG 2,261.68 1,726.0K + 7.66 3,903.7M
XOM 84.46 45,851.6K + 52.46 3,872.6M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE TYPE R/VOL FUNDS FLOW $
AAPL 152.06 equities/options 107.61 20,007.7M
BABA 84.84 equities/options 107.60 1,980.0M
NUE 130.03 equities/options 66.25 624.4M
YM 32,295.00 DOW futures 17,564 567.2M
BA 30,925 bitcoin futures 5,841 180.6M


OUR PICK – Crude

Medium-term pullback, but risk for deeper correction remains. Crude slipped lower after news of China slowdown that would affect global demand, Saudi’s Aramco slashed price for June delivery and Hungary’s objection to EU ban on Russian’s oil. However, news reported that the US plans for a buyback in Q3 to replenish its SPR reserves. Technically, crude is at an uptrend channel after a long term break-out and this is a medium term pullback. However, risk for deeper correction remains.

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 99.00 105.30 108.50
Medium-Term Buy 99.00 108.50 111.50
Long-Term Buy 99.00 111.50 115.45

 

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.