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.
G8 CURRENCIES SENTIMENTS
** ST refers to Short-Term daily turnover, MT is Medium Term weekly
and LT refers to Long-Term monthly turnover.
WALL ST MOST ACTIVE
|VOLUME||90 DAYS AVG|
** % Change here refer to price
WALL ST TOP FLOWS
|% CHANGE||FUNDS FLOW $|
** % change here refers to volume
TOP 5 BLOCK ORDERS
|SYMBOL||PRICE||TYPE||R/VOL||FUNDS FLOW $|
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.
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.
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