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Safe-Haven Flows Continue

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STATE OF THE MARKETS

Safe-haven flows continue. Though US stocks continue to climb higher on Thursday, demand for bonds and haven currencies remain elevated after news of worse than expected contracting US GDP. Dow (+1.61%), S&P (1.99%) and Nasdaq (+2.68%), including Russell (+2.17%) closed in the green as yields fell lower on bond demands with the 10Y benchmark under pressure at 2.75% and the Dollar index fell lower to 101.50 at writing.

In the commodities market, crude jumped to close above $113/bl as markets expect tight supplies given the summer driving season. Gold was little changed under firm bid above $1850.50/oz as profit taking continued towards month end. Elsewhere, iron ore dropped below $133/tn as markets see slowing demand amid global growth concerns.

In the FX space, overall sentiments seemed bearish as Swiss advanced further in long term demands while Aussie, Kiwi and Loonie were sent to offers across the board. King Dollar was seen synching on offer in short and medium term accounts.

On Friday, markets may look to scoop some bargains while looking forward to earning reports from Big Lots (BIG), BIT Mining (BTCM), Canopy Growth (CGC), Hibbett (HIBB) and Pinduoduo (PDD) as well as the latest numbers on US personal income and consumer sentiments.


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G8 CURRENCIES SENTIMENTS

ST EUR GBP CAD CHF AUD NZD JPY USD ST
MT EUR CHF NZD GBP AUD JPY CAD USD MT
LT JPY USD EUR CHF CAD GBP 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 30.32 + 8.36 168,565.8K 134,185.5K
AMD 98.75 + 6.58 128,792.7K 110,496.6K
NVDA 178.51 + 5.16 99,657.4K 56,584.7K
SQQQ 52.16 – 8.33 99,084.9K 105,099.2K
AAPL 143.78 + 2.32 90,601.5K 97,980.4K
SPY 405.31 + 2.00 82,168.3K 114,543.3K
SNAP 14.81 + 4.59 80,386.4K 40,395.4K
AMC 12.23 + 2.95 71,002.4K 50,747.2K
RDBX 7.55 + 11.52 69,399.2K 9,884.2K
HYG 79.48 + 1.39 64,773.4K 43,644.5K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 707.73 35,334.4K + 14.90 25,007.2M
NVDA 178.51 99,657.4K + 54.14 17,789.8M
AAPL 143.78 90,601.5K – 22.50 13,026.7M
AMD 98.75 128,792.7K – 6.38 12,718.3M
AMZN 2,221.55 4,650.1K – 18.88 10,330.4M
MSFT 265.90 25,002.1K – 30.09 6,648.1M
BABA 94.48 50,825.0K + 117.61 4,801.9M
SNOW 126.80 35,730.3K + 287.67 4,530.6M
FB 191.63 23,056.4K – 32.29 4,418.3M
GOOGL 2,155.85 1,897.3K – 5.75 4,090.3M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE TYPE R/VOL FUNDS FLOW $
BMY 77.59 equities/options 67.74 933.3M
AEO 14.02 equities/options 64.45 175.0M
M 22.92 equities/options 63.71 1,107.5M
NQ 12,257.00 NASDAQ futures 25,483 312.4M
YM 32,547.00 DOW futures 5,842 190.1M


OUR PICK – No New Picks

No new picks going into the weekend. Another week of outflow from US equity for $4.6 billion despite the rebound. Smart money is channeling funds to short term money markets with $42 billion to take advantage of the higher coupon rate. We still believe that long term investors are waiting to scoop some bargains in higher yielding dividend stocks as well as commodities/commodities related stocks.

Trades updates: 

Equities:  CTRA (COG) (23% undervalued, 2.06% yields) reached target at $35.30; we remain bullish T (10% undervalued, 5.21% yields), VIPS (35% undervalued with 4.78 z-score) remained well bid despite recent Morgan Stanley downgrade to equal weight and reduced price target to $10, while CRON (24% undervalued with 27.69 z-score), WBA (28% undervalued, 4.70% yields) and M (47% undervalued, 3.25% yields) offer better opportunity for long term investors.

FX & Commodities: EUR/JPY reached short-term TP2/medium term TP1.

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.