STATE OF THE MARKETS
Stocks tumbled ahead of the FOMC. US stocks sank on Tuesday after reports of a global recession from the World Bank, ahead of the FOMC meeting on Wednesday. The small cap Russell (-1.40%) fell the most, followed by S&P (-1.13%), Dow (-1.01%) and Nasdaq (-0.95%) as bond sell-off continued, sending yields higher. The 10Y benchmark hit 3.6%, the highest in more than 10 years as the Dollar index climbed above the 110.50 minor handle.
In the commodity markets, Dollar strength pulled back major commodities lower but strong bids were observed as investors prepared for the FOMC rate decision. Crude made a higher low, but settled below $83/bl, while gold remained in the tight range of $1,680 – $1,660/oz. Elsewhere, iron ore continues its downward trajectory to $98.80/tn as demand concerns continue to plague the commodity.
In the FX space, overall sentiments were bearish with Swiss, Yen and Dollar regained strength across the board, though long term accounts remained offered on Yen. Aussie, Kiwi and Loonie remained in the offer territories.
On Wednesday, markets expect cautious trading ahead of the FOMC meeting that is expected to see another 75 basis points hike. Fed Chair Powell press conference is at 2:30 PM Eastern where investors expect hawks to stand the ground. Earnings to watch include General Mills (GIS), Lennar Corp (LEN), Trip.com (TCOM), H.B. Fuller (FUL), KB Home (KBH) and Steelcase Inc (SCS). EIA petroleum status will be in the spotlight for energy traders.
G8 CURRENCIES SENTIMENTS
| ST | CHF | USD | JPY | GBP | AUD | CAD | NZD | EUR | ST |
| MT | JPY | USD | CHF | EUR | AUD | GBP | CAD | 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 |
| F | 13.09 | – 12.32 | 195,927.4K | 61,136.1K |
| TQQQ | 24.59 | – 2.38 | 160,629.2K | 165,840.4K |
| SQQQ | 49.08 | + 2.42 | 118,740.4K | 121,013.2K |
| AAPL | 156.90 | + 1.57 | 107,544.6K | 82,310.7K |
| SPY | 384.09 | – 1.15 | 77,237.5K | 80,817.9K |
| UVXY | 10.46 | + 5.23 | 72,646.9K | 62,710.8K |
| TELL | 2.97 | – 23.85 | 71,343.5K | 17,247.8K |
| SOXL | 11.70 | – 4.57 | 70,310.1K | 65,628.4K |
| VRAX | 3.49 | + 41.30 | 62,745.4K | 3,243.9K |
| TSLA | 308.73 | – 0.11 | 61,473.3K | 84,018.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 308.73 | 61,473.3K | + 6.12 | 18,978.7M |
| AAPL | 156.90 | 107,544.6K | + 26.52 | 16,873.7M |
| NVDA | 131.76 | 52,412.1K | – 14.01 | 6,905.8M |
| MSFT | 242.45 | 26,603.9K | + 10.29 | 6,450.1M |
| AMZN | 122.19 | 47,606.0K | – 9.42 | 5,817.0M |
| NFLX | 242.85 | 16,026.2K | + 77.69 | 3,892.0M |
| AMD | 75.25 | 51,078.2K | – 27.18 | 3,843.6M |
| META | 146.09 | 23,157.0K | – 11.54 | 3,383.0M |
| GOOGL | 101.14 | 26,490.6K | + 0.46 | 2,679.3M |
| F | 13.09 | 195,927.4K | + 200.30 | 2,564.7M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| F | 13.09 | stock/options | 121.73 | 2,567.6M |
| LUMN | 8.56 | stock/options | 99.45 | 166.7M |
| ITUB | 5.48 | stocks/options | 78.86 | 278.1M |
| NQ | 1,478.60 | Soybean futures | 95,117 | 140.7M |
| YM | 692.00 | Corn futures | 110,990 | 76.8M |
OUR PICK – No New Pick
We decided to stay on the sideline. With the FOMC that may trigger volatile trading and VIX in ascending triangle pattern at 27, we decided to stay put for now.
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 | – | – | – | – |
| Medium-Term | – | – | – | – |
| Long-Term | – | – | – | – |
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.
