STATE OF THE MARKETS
Stocks surged higher post FOMC. US stocks surged higher on Wednesday after the Federal Reserve hiked 75 basis points as expected while leaving a bearish comment for the markets. Nasdaq (+4.06%) climbed the most, followed by S&P (+2.62%), Russell (+2.39%) and Dow (+1.37%) as the Dollar fell back below the 106.40 mark.
Flight to safety were noted as bond demands returned selectively, sending yields lower, with the 10Y benchmark settled around 2.78% while the 30Y jumped back to 3.07%. As at writing, the 1Y (3.01%), 2Y (3.00%) and 30Y (3.08%) yield 3% or more; while the 3Y (2.95%), 5Y (2.84%), 7Y (2.85%) and 10Y (2.80%) yield less than 3%.
In the commodity markets, Dollar weakness sent major commodities higher with gold settled above $1,733.80/oz while iron ore closed above $106.20/tn. Crude jumped higher after EIA’s report of reduced inventories amid surged in US exports to Europe. The black gold settled above $97.40/bl as New York closed.
In the FX space, overall sentiments seemed more bearish as Yen nearing demand zones in the long term while seizing the helm of demand in the medium term accounts as Kiwi was pushed further into offers. Short term traders were quick to sell King Dollar post FOMC.
On Thursday, markets expect to scoop further bargains as more earnings reports come in from Apple (AAPL), Amazon (AMZN), Mastercard (MA), Pfizer (PFE), Merck (MRK), Thermo Fisher (TMO), Comcast (CMCSA), Intel (INTC) and Digital Realty (DLR) as well as the latest US jobless claims and the much awaited GDP.
G8 CURRENCIES SENTIMENTS
| ST | GBP | EUR | AUD | CAD | CHF | JPY | NZD | USD | ST |
| MT | JPY | GBP | AUD | CHF | CAD | NZD | USD | EUR | MT |
| LT | CAD | CHF | AUD | USD | JPY | GBP | NZD | 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 | 30.74 | + 12.48 | 170,959.5K | 157,341.4K |
| SQQQ | 43.47 | – 12.39 | 129,089.9K | 113,761.3K |
| SNAP | 9.55 | – 0.83 | 120,729.3K | 44,449.6K |
| GOVX | 1.80 | + 5.88 | 100,047.8K | 12,008.8K |
| BWV | 3.14 | + 53.17 | 82,954.7K | 2,494.8K |
| SPY | 401.04 | + 2.60 | 82,342.1K | 93,091.0K |
| SHOP | 35.24 | + 11.70 | 79,941.5K | 39,763.3K |
| SOXL | 18.73 | + 14.00 | 78,797.6K | 58,455.2K |
| AAPL | 156.79 | + 3.42 | 78,620.6K | 89,507.2K |
| AMD | 89.82 | + 5.36 | 78,301.5K | 102,252.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 824.46 | 29,369.9K | + 1.11 | 24,214.3M |
| MSFT | 268.74 | 45,994.0K | + 76.50 | 12,360.4M |
| AAPL | 156.79 | 78,620.6K | + 10.00 | 12,326.9M |
| NVDA | 177.90 | 56,977.6K | + 5.27 | 10,136.3M |
| AMZN | 120.97 | 61,582.0K | – 3.09 | 7,449.6M |
| META | 169.59 | 43,846.5K | + 63.88 | 7,435.5M |
| AMD | 89.82 | 78,301.5K | – 7.19 | 7,033.0M |
| GOOGL | 113.06 | 59,858.4K | + 52.03 | 6,767.6M |
| GOOG | 113.60 | 41,474.6K | + 29.42 | 4,711.5M |
| V | 210.47 | 17,432.2K | + 199.45 | 3,669.0M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| SHOP | 35.24 | stock/options | 217.73 | 3.1M |
| CLAR | 19.82 | stock/options | 116.02 | 62.7M |
| TEVA | 9.14 | stocks/options | 91.42 | 3.1M |
| YM | 32,129.00 | DOW futures | 29,971 | 962.9M |
| NQ | 12,535.00 | NASDAQ futures | 72,122 | 904.2M |
OUR PICK – GBP/CHF
20 days volume spike. We expect a turnaround in this pair as of all G7 FX ETF, Sterling posed more than 137% spike in 20 days volume compared to 55% spike in Swiss, while all others are falling. Sterling has been plagued with political risks lately but markets are expecting more hikes from BoE despite having a new Prime Minister. The pair may range between 1.15 and 1.18 until September as the new PM will be announced on the 5th.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Buy | 1.1540 | 1.1700 | 1.1750 |
| Medium-Term | Buy | 1.1540 | 1.1750 | 1.1800 |
| Long-Term | Buy | 1.1500 | 1.1800 | 1.1880 |
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.
