STATE OF THE MARKETS
Stocks rally as the Dollar retreats. US stocks staged a relief rally after the Federal Reserve announced the biggest hike since 1994. Nasdaq (+2.50%) climbed the most followed by S&P (+1.46%), Russell (+1.36%) and Dow (+1.00%) as profit taking from short-sellers spiked the Dollar near the 105.80 barrier before pulling back to 104.85 mark. Yield inversions are getting worse as the 30Y (3.34%) and 10Y (3.31%) get below 3Y (3.37%), 5Y (3.39%) and 7Y (3.39%) at writing.
In the commodities market, crude fell lower after news of less than expected reduction in inventories. The black gold settled below $113.50/bl as New York closed. Gold rebounds on Dollar retreats and closes around $1,833.60/oz while iron ore continues to drag lower on demand concerns. The commodity settled below $137.20/tn as New York closed.
In the FX space, demand for Dollar retreated in the short and long term accounts as Loonie, Aussie, Kiwi and Sterling returned to bids. Medium term accounts however, remained cautious as demand for Dollar, Yen and Swiss remained elevated.
On Thursday, markets will continue to digest the details in FOMC meeting while waiting for earning reports from Kroger (KR), Jabil Inc (JBL), Adobe Inc (ADBE) and Commercial Metals (CMC) as well as the latest figures in US jobless claims, housing starts and permits, as Philly Fed manufacturing index.
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G8 CURRENCIES SENTIMENTS
| ST | AUD | NZD | GBP | JPY | CAD | EUR | USD | CHF | ST |
| MT | USD | JPY | CHF | EUR | NZD | CAD | AUD | GBP | MT |
| LT | CAD | AUD | USD | CHF | EUR | NZD | GBP | 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 |
| TQQQ | 24.90 | + 7.19 | 272,891.5K | 138,031.1K |
| SQQQ | 59.17 | – 7.30 | 141,433.4K | 110,112.7K |
| SPY | 379.20 | + 1.43 | 124,908.1K | 105,647.6K |
| NIO | 20.11 | + 7.77 | 120,848.5K | 70,851.9K |
| SIDU | 4.68 | + 225.00 | 102,581.3K | 1,327.2K |
| AMD | 89.30 | + 2.66 | 95,546.6K | 110,552.7K |
| AAPL | 135.43 | + 2.01 | 91,264.7K | 93,723.5K |
| XLF | 31.64 | + 1.12 | 87,784.2K | 70,723.5K |
| QQQ | 282.80 | + 2.50 | 85,063.6K | 78,179.5K |
| AMZN | 107.67 | + 5.24 | 84,568.7K | 84,497.2K |
** % Change here refer to price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 699.00 | 39,492.2K | + 23.38 | 27,605.0M |
| AAPL | 135.43 | 91,264.7K | – 2.43 | 12,360.0M |
| NVDA | 165.27 | 56,206.1K | – 4.56 | 9,289.2M |
| AMZN | 107.67 | 84,568.7K | – 13.27 | 9,105.5M |
| AMD | 89.30 | 95,546.6K | – 15.08 | 8,532.3M |
| MSFT | 251.76 | 33,051.5K | + 8.46 | 8,321.1M |
| META | 169.35 | 29,942.9K | + 7.95 | 5,070.8M |
| GOOGL | 2,195.29 | 1,977.0K | + 1.64 | 4,340.1M |
| GOOG | 2,207.81 | 1,654.8K | + 3.47 | 3,653.5M |
| BA | 133.72 | 25,899.9K | + 145.89 | 3,463.3M |
** % change here refers to volume
TOP 5 BLOCK ORDERS
| SYMBOL | PRICE | TYPE | R/VOL | FUNDS FLOW $ |
| PCG | 10.28 | equities/options | 317.61 | 309.7M |
| META | 169.35 | equities/options | 127.13 | 5,073.3M |
| XP | 19.53 | equities/options | 121.47 | 141.4M |
| ZS | 1,693.60 | soybean futures | 85,384 | 144.6M |
| ZC | 774.00 | corn futures | 85,834 | 66.4M |
OUR PICK – USD/CAD
Trading the Dollar pullback. Despite Fed’s recent hike of 75 basis points, 1Y spreads with the Loonie remain significant (2.96% vs 3.16%). The Federal Reserve has to do a lot more to catch up. We see short to medium term pullback as risk appetite improves. Upside risk remains however, especially if there is sudden change in sentiments.
For more high probability picks, please use our Trading Central services.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Sell @ 1.2950 | 1.3000 | 1.2850 | 1.2785 |
| Medium-Term | Sell @ 1.2950 | 1.3000 | 1.2785 | 1.2705 |
| Long-Term | Flat | – | – | – |
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.
