STATE OF THE MARKETS
Stocks sink on inflation shock. US stocks sank on Tuesday after reports of higher than expected inflation, prompting markets to pullback on bullish bets. The tech-laden Nasdaq (-5.16%) fell the most, followed by S&P (-4.32%), Dow (-3.94%) and Russell (-3.91%) as the Dollar index jumped back to the 110 handle. As at writing, yields jumped as bonds were sold off while inversion remained to be seen between the short term 1Y (3.95%), 2Y (3.78%) and the long term 5Y (3.61%), 10Y (3.43%) and 30Y (3.51%).
In the commodity markets, Dollar strength pulled back major commodities lower with crude dropping to $84.67/bl before settling around $87.15/bl as New York closed. Gold dropped near the $1,700/oz major handle as the non-interest bearing assets struggled to find bids in rising yields. Elsewhere, iron ore however remained stalled around $101.40/tn waiting for the next catalysts.
In the FX space, King Dollar returned to the helm of demand in the short and long term while advanced into the demand territories in the medium term. Swiss, Euro and Sterling however, still led the demand.
On Wednesday, markets expect cautious trading in a thin earnings calendar with eyes on the producer price index to see if inflation is sticky. Earnings to watch include BRP Inc (DOOO) and RF Industries (RFIL). EIA petroleum status will be in the spotlight for energy traders.
G8 CURRENCIES SENTIMENTS
| ST | USD | JPY | CHF | GBP | EUR | CAD | AUD | NZD | ST |
| MT | CHF | EUR | GBP | USD | CAD | AUD | JPY | NZD | MT |
| LT | USD | CHF | EUR | CAD | AUD | GBP | NZD | 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 | 25.84 | – 16.46 | 195,610.7K | 168,336.1K |
| SQQQ | 46.96 | + 16.50 | 180,729.2K | 122,140.4K |
| SPY | 393.10 | – 4.35 | 122,940.4K | 83,913.2K |
| AAPL | 153.84 | – 5.87 | 122,592.2K | 83,010.7K |
| UVXY | 10.52 | + 13.48 | 111,637.5K | 64,617.9K |
| SOXL | 12.09 | – 18.20 | 86,046.9K | 65,110.8K |
| AMD | 77.03 | – 8.99 | 80,863.5K | 96,547.8K |
| F | 14.74 | – 5.15 | 80,810.1K | 61,228.4K |
| QQQ | 293.70 | – 5.48 | 79,545.4K | 63,943.9K |
| NIO | 21.97 | + 1.01 | 78,010.9K | 56,118.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 292.13 | 68,145.7K | + 20.20 | 19,907.4M |
| AAPL | 153.84 | 122,592.2K | + 62.60 | 18,859.6M |
| NVDA | 131.31 | 71,443.8K | + 24.49 | 9,381.3M |
| AMZN | 126.82 | 72,639.5K | + 47.45 | 9,212.1M |
| MSFT | 251.99 | 33,346.5K | + 54.04 | 8,403.0M |
| META | 153.13 | 44,400.7K | + 90.46 | 6,799.1M |
| AMD | 77.03 | 80,863.5K | + 16.59 | 6,228.9M |
| GOOGL | 104.32 | 38,156.3K | + 59.78 | 3,980.5M |
| GOOG | 105.31 | 33,008.1K | + 58.95 | 3,476.1M |
| ORCL | 76.04 | 29,475.9K | + 286.60 | 2,241.3M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| GOOG | 105.31 | stock/options | 168.92 | 3,476.8M |
| LBTYA | 19.02 | stock/options | 154.39 | 33.1M |
| BA | 147.31 | stocks/options | 89.52 | 1,285.3M |
| NQ | 12,120.25 | NASDAQ futures | 13,980 | 169.6M |
| YM | 31,250.00 | DOW futures | 3,927 | 123.0M |
OUR PICK – Crude Oil
Short to medium term pullback. Elliot wave seemed to suggest an upward motive is completed and now on short to medium term pullback. As markets expect at least another 75 basis points hike next week, Dollar strength is expected to return especially after the upbeat inflation report yesterday. PPI today may strengthen the case for a higher rate.
For high probability picks, please use our Trading Central services. You could also join us at MFM’s TradeCopy
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | Sell | 87.80 | 85.80 | 84.90 |
| Medium-Term | Sell | 87.80 | 84.90 | 84.00 |
| Long-Term | Flat | – | – | – |
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.
