STATE OF THE MARKETS
Stocks, bonds and the Dollar dropped. US stocks dip lower on Monday after Fed officials signaled a 75 basis point rate hike was most likely in the July FOMC meeting, though investors priced in a full point hike is possible. S&P (-0.84%) fell the most, followed by Nasdaq (-0.81%), Dow (-0.69%) and Russell (-0.34%) as the Dollar pulled back to the 106.80 barrier. Expecting another hike, bonds were sold off across the board, sending yields higher, with the 10Y benchmark piercing back the 3% mark.
In the commodity markets, lower Dollar sent major commodities higher, with crude rebounded and settled higher around $98.70/bl while gold was on firm support at the $1,700/oz handle. Elsewhere, iron ore was little changed at around $106.70/tn as investors await for the next catalyst.
In the FX space, King Dollar was sold alongside Loonie, Swissy, Kiwi and Yen in the short and medium term accounts while Sterling, Aussie, Euro, Loonie and Kiwi were in demand. Long term accounts were noted to back into selling Yen while buying Sterling.
On Tuesday, markets expect a higher volatility as earnings seasons kicked into higher gears with reports from Johnson & Johnson (JNJ), Novartis (NVS), Lockheed Martin (LMT), Netflix (NFLX), Truist Financial (TFC), Haliburton (HAL), Citizens Financial (CFG) and JB Hunt Transport (JBHT) as well as the latest numbers on US housing markets.
G8 CURRENCIES SENTIMENTS
| ST | GBP | EUR | CAD | AUD | JPY | USD | CHF | NZD | ST |
| MT | AUD | EUR | NZD | GBP | CHF | CAD | USD | JPY | MT |
| LT | CHF | USD | CAD | GBP | NZD | AUD | JPY | EUR | 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 | 26.17 | – 2.31 | 159,950.2K | 155,762.1K |
| QD | 1.67 | + 40.34 | 114,274.6K | 1,371.5K |
| SQQQ | 52.89 | + 2.42 | 110,211.5K | 112,700.3K |
| ILAG | 3.10 | + 37.78 | 107,407.0K | 7,090.8K |
| AMD | 81.43 | + 0.39 | 90,464.3K | 104,176.0K |
| SOXL | 14.92 | – 1.26 | 83,926.6K | 56,829.8K |
| AAPL | 147.07 | – 2.06 | 81,420.8K | 92,386.7K |
| NVDA | 161.01 | + 2.15 | 67,051.7K | 55,645.6K |
| CCL | 9.65 | + 5.12 | 66,343.7K | 43,034.3K |
| SPY | 381.95 | – 0.83 | 63,203.6K | 97,102.6K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 721.64 | 27,512.4K | – 8.56 | 19,854.0M |
| AAPL | 147.07 | 81,420.8K | + 5.03 | 11,974.6M |
| NVDA | 161.01 | 67,051.7K | + 31.52 | 10,796.0M |
| AMD | 81.43 | 90,464.3K | + 2.33 | 7,366.5M |
| AMZN | 113.76 | 59,115.4K | – 12.44 | 6,725.0M |
| MSFT | 254.25 | 20,975.0K | – 21.36 | 5,332.9M |
| GOOGL | 109.03 | 43,164.5K | + 13.20 | 4,706.2M |
| META | 167.23 | 23,574.3K | – 22.96 | 3,942.3M |
| GOOG | 109.91 | 33,353.9K | + 4.81 | 3,665.9M |
| NFLX | 190.92 | 16,322.8K | + 76.19 | 3,116.3M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| WISH | 1.53 | stock/options | 352.27 | 85.9M |
| CCL | 9.65 | stock/options | 188.72 | 104.9M |
| NCR | 29.10 | stocks/options | 148.52 | 3,145.0M |
| YM | 31,244 | DOW futures | 32,534 | 1,016.5M |
| NQ | 12,008.00 | NASDAQ futures | 72,414 | 869.7M |
OUR PICK – EUR/JPY
Long term sentiment remains bearish. Though short and medium term sentiments have improved, long term remains bearish as risk of Euro Zone fragmentation was highlighted by the ECB. Euro bonds were sold off for the past few weeks, forcing yields to spike higher and ECB has called for an emergency meeting to address the higher borrowing costs for governments. Yen traders might be willing to buy Euro albeit at a lower exchange rate unless the issue is resolved.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Sell @ 141.40 | 142.00 | 140.00 | 139.20 |
| Medium-Term | Sell | 142.00 | 139.20 | 138.30 |
| Long-Term | Sell | 142.00 | 138.30 | 137.00 |
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.
