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Stocks Tumble, Dollar Spike Ahead of CPI

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STATE OF THE MARKETS

Stocks tumble, Dollar spike ahead of CPI. US stocks tumbled on Thursday as investors weighed the sticky inflation factor that can escalate to stagflation as the yields curve inversion remains. Tech-laden Nasdaq (-2.75%) fell the most, followed by S&P (-2.38%), Russell (-2.12%) and Dow (-1.94%) while cash demand spiked the Dollar index past the 103.20 barrier. Treasuries demand are seen more into the longer dated 30Y (3.17%) than the shorter maturities.

In the commodities market, Dollar strength sent major commodities lower with crude settled lower around $119.45/bl while gold at around $1,847.60/oz. Elsewhere, iron ore suffered a similar fate and fell to $143.60/tn.

In the FX space, King Dollar seized the helm of demand in the short and medium term accounts as Euro and Loonie retreated to offers in the short term. In the long term accounts, Dollar and Sterling flipped to demand while Aussie and Kiwi flipped to offers, signaling a turn in sentiments.

On Friday, markets may look to scoop some bargains as the thin calendar only bears the earnings report from UP Fintech (TIGR) and the much awaited May CPI.


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G8 CURRENCIES SENTIMENTS

ST USD JPY CHF GBP NZD EUR CAD AUD ST
MT USD GBP CAD EUR AUD NZD CHF JPY MT
LT CAD EUR USD GBP AUD CHF 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
PBTS 1.12 + 189.86 274,794.1K 2,246.0K
TQQQ 29.99 – 8.15 137,534.6K 134,724.1K
AUVI 2.75 + 55.37 126,152.9K 1,451.5K
SQQQ 51.03 + 8.11 111,417.4K 107,357.1K
AMD 98.80 – 3.04 95,298.9K 111,926.2K
SPY 401.44 – 2.38 86,166.7K 105,843.0K
NIO 18.82 – 7.65 73,669.2K 70,768.4K
BABA 109.90 – 8.13 72,637.2K 31,057.2K
AAPL 142.64 – 3.60 69,472.9K 93,813.1K
AMZN 116.15 – 4.15 67,029.8K 85,907.7K
** % Change here refer to price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 719.12 32,163.7K + 1.46 23,129.6M
AAPL 142.64 69,472.9K – 28.47 9,909.6M
AMD 98.80 95,298.9K – 21.65 9,415.5M
BABA 109.90 72,637.2K + 135.70 7,982.8M
AMZN 116.15 67,029.8K – 32.50 7,785.5M
NVDA 180.48 39,557.3K – 34.95 7,139.3M
MSFT 264.79 26,439.7K – 14.37 7,001.0M
META 184.00 23,501.5K – 15.02 4,324.3M
GOOGL 2,296.71 1,289.8K – 31.58 2,962.3M
XOM 102.33 26,634.3K – 1.74 2,725.5M
** % change here refers to volume


TOP 5 BLOCK ORDERS

SYMBOL PRICE TYPE R/VOL FUNDS FLOW $
CVE 24.15 equities/options 45.66 136.5M
UPST 39.67 equities/options 39.75 324.1M
FCX 40.52 equities/options 35.68 549.1M
NQ 12,329.00 NASDAQ futures 33,587 413.9M
YM 32,313.00 DOW futures 7,766 250.8M


OUR PICK – No New Picks

No new picks going into the weekend. Another week of outflow from US equity for $2.7 billion and $2.8 billion out of the taxable bond funds. Smart money is channeling funds to short term money markets with $24.3 billion to take advantage of the higher coupon rate. With bond yields crossed into the 3% mark, investors may look into treasuries though real yields remain negative as inflation looms higher.

Trades updates: 

Equities: We remain bullish T (11% undervalued, 5.32% yields) while VIPS (29% undervalued with 4.78 z-score), CRON (24% undervalued with 27.69 z-score), WBA (29% undervalued, 4.58% yields) and M (47% undervalued, 2.63% yields) offer better opportunity for long term investors.

FX & Commodities: EUR/CHF has reached long term TP2, EUR/USD has reached medium term TP1 on re-entry, AUD/USD has reached short term TP1 and stops moved to breakeven (BE).

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.