STATE OF THE MARKETS
Stocks retreat amid safe haven flows. US stocks closed lower on Monday as short term traders took profits and moved funds into bonds and safe havens. S&P (-0.28%), Nasdaq (-0.18%) and Dow (-0.14%), including Russell (-0.10%) dragged lower as yields tumbled on safe haven demands. The 10Y benchmark was below 2.65% for the first time in 16 weeks.
As at writing all yields were below 3% – 1Y (2.98%), 2Y (2.86%), 5Y (2.61%), 7Y (2.60%), 10Y (2.55%), 30Y (2.89%) – and 10Y yields the lowest as the Dollar fell near the 105 handle.
In the commodity markets, crude fell for the second day as concerns on global growth continue. The black gold settled below $93.30 as New York closed. Dollar weakness continued to buoy Gold and iron ore further with gold breaking key level $1780/oz while iron ore broke $114.30/tn.
In the FX space, flights to safety were evident as Yen seized the helm of demand in the long term accounts and reigned across all horizons with demand from Swiss elevated in the long and medium term. Short term traders seemed to expect risk-on around the corner as Kiwi was bid while Loonie was offered.
On Tuesday, markets expect a cautious trading while looking for earnings reports from big names like Advanced Micro Devices (AMD), Paypal (PYPL), S&P Global (SPGI), Caterpillar (CAT), Starbucks (SBUX), BP PLC (BP), Gilead Sciences (GILD), Airbnb (ABNB), Uber Tech (UBER), KKR & Co (KKR), and Electronic Arts (EA) as well as the latest numbers on US jobs opening.
G8 CURRENCIES SENTIMENTS
| ST | JPY | NZD | GBP | EUR | AUD | CHF | USD | CAD | ST |
| MT | JPY | CHF | GBP | NZD | AUD | EUR | USD | CAD | MT |
| LT | JPY | AUD | CHF | CAD | NZD | USD | GBP | 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 | 33.31 | – 0.15 | 142,630.6K | 159,236.1K |
| SQQQ | 39.89 | + 0.15 | 125,429.2K | 114,740.4K |
| GOVX | 3.90 | + 42.86 | 115,640.4K | 16,213.2K |
| F | 15.34 | + 4.42 | 109,519.1K | 62,324.7K |
| AMD | 96.78 | + 2.45 | 96,477.5K | 101,430.0K |
| AMZN | 135.39 | + 0.33 | 76,846.9K | 81,100.8K |
| AEMD | 1.38 | + 38.00 | 76,229.7K | 867.8K |
| SPY | 410.77 | – 0.30 | 70,010.1K | 92,528.4K |
| AAPL | 161.51 | – 0.62 | 67,829.3K | 89,130.1K |
| UVXY | 10.82 | + 4.85 | 63,310.9K | 67,918.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 891.83 | 39,014.2K | + 30.93 | 34,794.0M |
| AAPL | 161.51 | 67,829.3K | – 6.06 | 10,955.1M |
| AMZN | 135.39 | 76,846.9K | + 14.54 | 10,404.3M |
| AMD | 96.78 | 96,477.5K | + 17.50 | 9,337.1M |
| NVDA | 184.41 | 47,646.9K | – 8.94 | 8,786.6M |
| META | 159.93 | 40,596.7K | + 36.29 | 6,492.6M |
| MSFT | 278.01 | 21,539.5K | – 19.28 | 5,988.2M |
| BABA | 90.34 | 36,050.9K | + 37.58 | 3,256.8M |
| BA | 169.07 | 18,321.5K | + 88.30 | 3,097.6M |
| GOOGL | 114.86 | 26,034.2K | – 33.26 | 2,990.3M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| AFRM | 27.17 | stock/options | 117.61 | 282.1M |
| TSM | 86.31 | stock/options | 102.68 | 1,735.1M |
| NKLA | 6.71 | stocks/options | 75.46 | 95.5M |
| YM | 32,664.00 | DOW futures | 9,086 | 297.1M |
| NQ | 12,909.25 | NASDAQ futures | 20,791 | 268.4M |
OUR PICK – AUD/CAD
Crude weakness would weigh on Loonie. We see global growth concerns will continue to weigh on crude demand though risk of supply constraint given Russia’s invasion of Ukraine remains. This is likely to weigh on Loonie that relies heavily on crude export and we see the biggest beneficiaries will be Aussie and Kiwi amongst the commodity blocks.
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Buy | 0.8870 | 0.8950 | 0.9000 |
| Medium-Term | Buy | 0.8840 | 0.9000 | 0.9075 |
| Long-Term | Buy | 0.8840 | 0.9075 | 0.9250 |
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.
