STATE OF THE MARKETS
Equities down as Feds hints tapering. Global equities trended down on Wednesday after minutes from the Feds’ meeting in April revealed that several officials were expressing a need for timely change to the monetary support. Dow (-0.48%), S&P (-0.29%), and FTSE UK (-1.19%) closed lower, while Nikkei (+0.01%) struggle to keep buyers in bidding the markets up. The news saw bonds market lost demand, sending 5Y (0.86%), 10Y (1.68%) and 30Y (2.39%) yields higher.
Crude futures continue to close lower for the second day in a row, below $63.40/bl, as markets priced Iran’s potential supplies and continued rising Covid cases in Asia that might hamper demand. Rising yields spooked gold buyers, as the metal closed below $1870, forming bearish doji after more than $115 million worth of block orders hit the futures market.
Deteriorating sentiments continue to send Swiss further in demand for the long term accounts, while Aussie and Kiwi on offers for Dollar. BoC recent signal on rate hike, managed to keep Loonie at the helm of demand, while short to medium term accounts have it on offer. Short and medium terms accounts were seen to run towards Yen as they bid Euro and Dollar, while Sterling was seen synching across all horizons.
G8 CURRENCIES SENTIMENTS
| ST | USD | JPY | EUR | GBP | CAD | CHF | AUD | NZD | ST |
| MT | EUR | JPY | CHF | GBP | AUD | NZD | CAD | USD | MT |
| LT | CAD | CHF | EUR | GBP | USD | NZD | AUD | 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 |
| UVXY | 4.89 | + 7.47 | 242,887.1K | 90,879.8K |
| T | 28.96 | – 2.00 | 122,589.0K | 44,863.4K |
| SQQQ | 12.34 | – 0.32 | 110,580.6K | 89,396.8K |
| SPY | 410.86 | – 0.26 | 106,407.2K | 80,217.6K |
| MOSY | 5.46 | + 44.06 | 91,798.5K | 1,812.6K |
| AMC | 12.64 | – 9.91 | 88,728.6K | 141,103.6K |
| AAPL | 124.69 | – 0.13 | 92,534.4K | 102,395.8K |
| AMD | 76.23 | + 2.40 | 73,867.8K | 45,435.6K |
| F | 12.11 | – 0.25 | 70,077.0K | 75,230.2K |
| NIO | 33.45 | – 2.14 | 68,687.3K | 96,430.7K |
** % Change here refer to price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 563.46 | 39,487.0K | + 22.58 | 22,249.3M |
| AAPL | 124.69 | 92,534.4K | – 0.66 | 11,538.1M |
| AMZN | 3,231.80 | 2,677.0K | – 40.04 | 8,651.5M |
| MSFT | 243.12 | 25,724.8K | – 9.44 | 6,254.2M |
| FB | 313.59 | 19,094.3K | – 11.10 | 5,987.8M |
| AMD | 76.23 | 73,867.8K | + 43.41 | 5,630.9M |
| NVDA | 562.63 | 8,589.4K | + 39.51 | 4,832.7M |
| COIN | 224.80 | 16,736.9K | + 119.16 | 3,762.5M |
| BABA | 212.54 | 17,013.3K | + 6.31 | 3,616.0M |
| T | 28.96 | 122,589.0K | + 104.32 | 3,550.2M |
** % change here refers to volume
TOP 5 BLOCK ORDERS
| SYMBOL | PRICE / STRIKE | TYPE | VOL/OI | FUNDS FLOW $ |
| TSLA | 563.46 / 460.00 | stock options/put | 45.75 | 22,249.3M |
| 6E | 1.22145 – 1.22225 | FX futures/EURUSD | 696 | 85.1M |
| GC | 1,861.00 – 1,867.40 | gold futures | 618 | 115.2M |
| ZF | 124.0000 | US bond futures | 7,992 | 99,100.8M |
| CL | 57.35 – 64.25 | crude oil futures | 14,017 | 863.5M |
OUR PICK – Crude Oil
The Iran deal might spark medium term weakness. A comeback of Iran into the nuclear deal would potentially increase supplies that would create a glut like before ex-President Trump nullified the deal. A year even before the deal was signed in July 2015, crude price has started to drop from it’s height in June 2014 at $107.70s/bl to the lowest in August 2015 around $37.75/bl, about a month after the deal was signed. Price then dropped further to $26.05/bl in February 2016 before OPEC and Russia started negotiating to stabilize the price. Now, below $68/bl and with two days of selling pressure, we see that any short term rebound may be selling opportunities for the medium term.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Buy | 62.80 | 64.50 | 65.50 |
| Medium-Term | Sell Limit @ 65.50/80 | 67.20 | 62.15 | 60.50 |
| 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.
