STATE OF THE MARKETS
Dow enters bear market, S&P hits new low. US stocks tumbled further on Monday as investors continue to weigh Fed’s rate hikes in the coming months to battle inflation. The blue chip Dow (-1.11%) finally fell 20% from its peak in January while the S&P (-1.03%) hit a new low for the year. The S&P has been in a bear market since June while the tech-laden Nasdaq (-0.60%) in March.
Stocks liquidation and Dollar demand amid rising yields has sent the Dollar index past the 113.50 mark – the highest in 20 years. In the bond market, yields for 1Y (4.16%), 2Y (4.29%), 5Y (4.11%) including 7Y (4.02%) has surpassed 4% while the 10Y (3.85%) benchmark and the 30Y (3.70%) remained under.
In the commodity markets, Dollar strength and demand concerns amid global recession fears continue to weigh on crude oil as the black gold drifted lower near $76/bl. Non-interest bearing gold continued to lose bidders and settled below $1,625/oz as New York closed. Elsewhere, iron ore rebounded to $99/tn as short-covering and profit taking continue to lift the commodity.
In the FX space, sentiments are more bearish as long term accounts demand more Yen and sell Aussie, Kiwi and Sterling. Dollar, Yen and Swiss continue to lead in the demand territories. Short term traders were quick to bid the oversold Sterling while dumping Loonie and Yen.
On Tuesday, markets expect more cautious trading and ready to sell on rally as VIX looks poised to shoot north. Earnings reports to watch for include TD Synnex (SNX), Jabil (JBL), Endava (DAVA), Neogen (NEOG), BlackBerry (BB), Cal-Maine Foods (CALM), United Natural Foods (UNFI), Cracker Barrel (CBRL) and Progress Software (PRGS) as well as the latest numbers on US new home sales, home price index, durable good orders, consumer confidence and manufacturing index.
G8 CURRENCIES SENTIMENTS
| ST | GBP | USD | EUR | AUD | CHF | NZD | JPY | CAD | ST |
| MT | USD | JPY | CHF | CAD | AUD | EUR | NZD | GBP | MT |
| LT | USD | CHF | EUR | CAD | JPY | AUD | NZD | GBP | 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 | 21.02 | – 1.36 | 245,341.3K | 166,136.1K |
| SQQQ | 56.97 | + 1.26 | 163,229.6K | 121,440.4K |
| SOXL | 9.55 | – 4.79 | 96,536.0K | 67,313.2K |
| AAPL | 150.77 | + 0.23 | 93,289.5K | 80,810.7K |
| SPY | 364.31 | – 0.99 | 92,622.5K | 80,107.9K |
| F | 11.99 | – 2.60 | 89,342.9K | 62,710.8K |
| UVXY | 12.48 | + 5.49 | 89,123.8K | 63,817.8K |
| AMD | 66.30 | – 2.44 | 82,866.1K | 89,428.4K |
| QQQ | 274.37 | – 0.41 | 71,226.8K | 58,943.9K |
| SOFI | 5.08 | – 4.33 | 65,510.9K | 40,118.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 276.01 | 58,014.8K | – 1.83 | 16,012.7M |
| AAPL | 150.77 | 93,289.5K | + 1.42 | 14,065.3M |
| AMZN | 115.15 | 62,698.8K | + 11.26 | 7,219.8M |
| NVDA | 122.28 | 54,691.6K | – 12.74 | 6,687.7M |
| MSFT | 237.45 | 27,673.3K | + 5.57 | 6,571.0M |
| AMD | 66.30 | 82,866.1K | + 8.94 | 5,494.0M |
| META | 136.37 | 30,468.5K | + 5.07 | 4,155.0M |
| GOOGL | 98.17 | 27,061.3K | – 4.05 | 2,656.6M |
| GOOG | 98.81 | 22,426.3K | – 10.79 | 2,215.9M |
| COST | 480.30 | 4,000.5K | + 73.36 | 1,921.4M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| ARMK | 32.73 | stock/options | 175.68 | 124.8M |
| ATUS | 6.51 | stock/options | 84.06 | 49.2M |
| AAL | 11.86 | stocks/options | 76.81 | 452.5M |
| NQ | 11,384.50 | NASDAQ futures | 14,710 | 167.6M |
| YM | 29,481.00 | DOW futures | 4,297 | 126.7M |
OUR PICK – GBP/JPY
Medium to long term weakness. We see medium to long term weakness in Sterling as markets react to recent UK tax cuts coupled with the energy crisis in the coming winter. We prefer sell stops though aggressive traders may enter at the market with stops above the 158 handle. Further rebound in the short term could not be ruled out.
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 | Flat | – | – | – |
| Medium-Term | Sell Stop @ 154.70 | 156.80 | 153.00 | 151.00 |
| Long-Term | Sell Stop @ 154.70 | 156.80 | 151.00 | 149.50 |
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.
