STATE OF THE MARKETS
Democrats lead in the early count, rising covid cases, plus failed stimulus talks all boiled to lower stocks and higher safe-haven demand. Major indices closed lower with investors running for cover, as opening polls showed that Democrats lead by 9%. Though there is still almost a week before the final election day, major bookies are placing 2/3 odds for Biden to win the election and shall the election delivered a close and contested results; current trends will continue.
Safe haven was sought after, with gold futures climbed back above $1,900 and Dollar index closed above $93 with bond yield tumbled to two weeks low. Investors saw new energy agenda shall the Democrats win, thus oil futures hit $38.50 for the first time after 3 weeks.
In the FX space, short to medium term accounts remain bullish with commodities currencies leading and CHF on the back foot. Long term, however, uncertainties still dominate investors sentiments.
G8 CURRENCIES SENTIMENTS
| ST | USD | JPY | NZD | AUD | GBP | CHF | EUR | CAD | ST |
| MT | NZD | AUD | JPY | GBP | EUR | CHF | CAD | USD | MT |
| LT | CHF | GBP | NZD | EUR | CAD | AUD | JPY | USD | LT |
** ST refers to Short-Term which is daily turnover, MT is Medium Term which is
weekly and LT refers to Long-Term which is monthly turnover.
WALL ST MOST ACTIVE
| TICKER | LAST PRICE |
% CHANGE |
VOLUME | 90 DAYS AVG |
| SNAP | 41.27 | -4.40 | 138,808.6K | 23,422.2K |
| DSS | 6.82 | +68.81 | 119,930.1K | 726.4K |
| AAPL | 115.05 | +0.01 | 111,850.7K | 163,370.1K |
| GE | 7.38 | -3.28 | 104,254.4K | 92,131.1K |
| AAL | 11.80 | -6.35 | 85,349.6K | 71,100.2K |
| SPY | 339.39 | -1.85 | 91,473.0K | 73,243.4K |
| SQQQ | 22.58 | +4.54 | 84,589.5K | 46,990.7K |
| GRIL | 2.04 | +33.33 | 84,019.9K | 507.0K |
| NIO | 26.01 | -4.23 | 72,610.3K | 127,340.2K |
| AMD | 82.23 | +0.33 | 69,423.7K | 57,507.8K |
** % Change here refer to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| AMZN | 3,207.04 | 5,901.1K | +18.28 | 18,925.1M |
| AAPL | 115.05 | 111,850.6K | -12.79 | 12,868.4M |
| TSLA | 420.28 | 28,239.1K | -31.04 | 11,868.3M |
| MSFT | 210.08 | 37,111.5K | +39.08 | 7,796.4M |
| FB | 277.11 | 21,322.9K | +13.58 | 5,908.8M |
| SNAP | 41.27 | 138,808.6K | +177.84 | 5,728.6M |
| AMD | 82.23 | 69,423.6K | +45.09 | 5,708.7M |
| ZM | 517.79 | 10,080.7K | +5.87 | 5,219.7M |
| NVDA | 525.65 | 8,422.3K | -15.47 | 4,427.2M |
| NFLX | 488.24 | 6,186.0K | -7.63 | 3,020.3M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE/STRIKE | TYPE | VOL/OI | FUNDS FLOW |
| SPWR | 16.42/16.00 | stock options/put | 70.54 | 154.2M |
| RUN | 56.30/55.00 | stock options/call | 60.30 | 325.5M |
| PCG | 10.03/10.00 | stock options/put | 49.14 | 174.4M |
| SOJ1 | 24.57/22.00 | silver options/put | 100 | 24.5K |
| CLZ0 | 38.40-50 | crude oil futures | 3,216 | 123.5K |
OUR PICK – USD/CAD
With crude oil price collapse, rising worries of a second lockdown, all spell into risk-off mood; we favor long USD/CAD. Though current short term (ST) G8 currencies sentiments supports this trade idea, in the medium to long term this is more of a short-covering than a fresh buy. Be ready to exit when buyers show exhaustion especially around the 1.3410 pivot; though we believe a further leg higher is possible especially if Democrat won the US election.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | BUY | 1.3100 | 1.3250 | 1.3330 |
| Medium-Term | BUY | 1.3100 | 1.3300 | 1.3400 |
| Long-Term | FLAT | – | – | – |
Disclaimer:
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities. 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.
