Stocks Eased As Dollar Retreated

STATE OF THE MARKETS

Stocks eased as Dollar retreated. Major US stocks indexed, except Russell (+0.34%), closed lower on Tuesday after a series of weaker economic reports hit the markets. Dow (-0.11%), S&P (-0.13%) and Nasdaq (-0.04%) were on heavy profit taking volume as Dollar (DXY) broke the 92.50 support level on weaker demand. Flows to treasuries were moderate, sending the 10Y yields back above 130 basis points.

In the commodities market, crude remains on firmed bid even after OPEC+ agreed to add 400k more barrels to daily production in response to the outage in the US gulf coast. The black gold settled around $68.50/bl as New York closed. Precious metal gold, was firmed above $1,800/oz after dovish Fed’s response sent yields seeking investors away from US treasuries. At 5.4% inflation, not even 30Y yields can hedge half of the rising costs.

In the FX space, short demand for Dollar receded after Kiwi and Aussie march to the forefront of demand in short and medium term accounts. Short term traders seemed cautious as Swiss and Euro were bid, while Loonie was sent to offers. Markets will look forward to seeing better ADP employment numbers and declining US manufacturing index on Wednesday, on top of EIA petroleum reports for energy traders.


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G8 CURRENCIES SENTIMENTS

ST NZD AUD CHF EUR USD GBP JPY CAD ST
MT NZD AUD EUR GBP USD CAD JPY CHF MT
LT NZD USD AUD JPY EUR GBP CAD CHF 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
BBIG 8.15 + 15.44 189,648.1K 18,443.8K
GSAT 1.99 – 15.32 147,948.8K 28,450.7K
AMC 47.13 + 8.77 127,659.5K 146,595.7K
ACIU 8.13 + 16.31 103,089.1K 400.9K
PLTR 26.34 + 2.25 93,168.6K 48,812.9K
AAPL 151.83 – 0.84 86,453.1K 79,943.1K
SQQQ 7.32 + 0.27 78,042.8K 76,032.9K
EDU 2.26 + 0.44 76,808.6K 64,933.2K
XELA 2.59 + 12.61 74,012.0K 51,190.2K
WFC 45.70 – 5.60 73,514.3K 25,710.3K
** % Change here refer to price

WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 735.72 20,855.4K + 27.66 15,343.7M
AMZN 3,470.79 4,356.4K + 57.40 15,120.2M
AAPL 151.83 86,453.1K + 29.46 13,126.2M
ZM 289.50 34,582.8K + 632.48 10,011.7M
MSFT 301.88 26,285.3K + 29.11 7,935.0M
AMC 47.13 127,659.5K + 33.73 6,016.6M
NVDA 223.85 25,984.9K – 11.88 5,816.7M
AMD 110.72 49,338.9K – 42.80 5,462.8M
FB 379.38 12,345.3K + 23.11 4,683.6M
SNOW 304.35 14,711.7K + 196.45 4,477.5M
** % change here refers to volume

TOP 5 BLOCK ORDERS

SYMBOL PRICE / STRIKE TYPE VOL/OI FUNDS FLOW $
ELYS 6.62 / 7.50 stock options/call 108.80 439.6M
BBIG 8.15 / 20.00 stock options/call 91.65 1,545.6M
UAA 23.14 / 23.00 stock options/call 60.02 140.9M
ZF 123.2200 US bond futures 5,000 61,610.0M
CL 65.50 – 68.90 crude oil futures 3,350 227.6M

OUR PICK – Cronos (CRON, NASDAQ)

On Accumulation. It took a little over a month for CRON to reach our short term TP2 and we noticed a  bullish divergence in money flows as price fell from monthly pivot around $7.70/share. Currently undervalued by about 18% per S&P GMI which put the stock’s fair value estimates around the monthly pivot. Recent $1.8 billion investment by Altria group in Cronos, if successful, will provide Cronos the opportunity to grow higher especially when Cannabis is legalized at the federal level. Currently, this five years old IPO does not pay dividends, but we still favor a long term hold in a cash account.

 

HORIZON STRATEGY SL TP1 TP2
Short-Term Buy 5.40 7.50 8.70
Medium-Term Buy 5.40 8.70 10.00
Long-Term Buy 5.40 10.00 15.00

Note: If you require fundamental reports for this stock, please contact your account manager or [email protected] for a copy.

 

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.

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