Stocks Rallied Ahead of The Election

STATE OF THE MARKETS

Stocks rallied ahead of the election. US stocks continue the rally from Friday, after NFP revealed higher unemployment that may prompt the Federal Reserve to hold its aggressive rates hike plan. Blue chip Dow (+1.31%) advanced the most, followed by S&P (+0.96%), Nasdaq (+0.85%) and Russell (+0.55%) as sentiments turned bullish ahead of the US midterm election on Tuesday. Bonds were sold off, sending yields higher, with the 10Y benchmark jumping back near 4.23% as the Dollar index dropped further below the 110.20 barrier.

In the commodity markets, crude opened with a gap lower after news of China’s uncertainty over its strict Covid policy. The black gold jumped back to $92.90/bl before settling lower around $91.12/bl as New York closed. Gold was little changed on Monday after the rally on Friday after bidders continued to support the metal around $1,660-1,665/oz. Elsewhere, Dollar weakness helped buoy iron ore back above $85.10/tn after weeks of slump on weaker demand.

In the FX space, long term sentiments remained bullish as the safe-haven trio were offered while Kiwi, Sterling, Euro and Loonie remained in demand. Medium term accounts seem more cautious as Yen advanced further in the demand territories alongside Kiwi, Aussie and Euro. Short term traders were quick to bid the oversold Sterling, Aussie and Euro while offering Swiss, Loonie and King Dollar.

On Tuesday, markets look to position for a split congress as stocks usually rally after midterm elections. Earnings releases to watch include Walt Disney (DIS), Occidental Petroleum (OXY), DuPont (DD), Constellation Energy (CEG), Lucid Group (LCID), Akamai Tech (AKAM) and Plug Power (PLUG) as well as the small business optimism index. It would be a long night on Tuesday or even days for investors waiting for the midterm election results.


G8 CURRENCIES SENTIMENTS

ST GBP AUD EUR NZD JPY CHF CAD USD ST
MT NZD JPY AUD EUR CHF CAD USD GBP MT
LT NZD GBP EUR CAD AUD USD CHF 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 18.52 + 3.18 199,741.3K 194,936.1K
SOXL 9.59 + 6.67 105,438.6K 95,840.4K
PLTR 7.02 – 11.48 99,036.0K 36,013.2K
SQQQ 57.66 – 3.17 97,434.6K 132,510.7K
TSLA 197.08 – 5.01 93,582.3K 76,107.9K
NIO 10.98 – 5.99 84,015.4K 49,910.8K
AAPL 138.92 + 0.39 83,234.4K 82,517.8K
META 96.72 + 6.53 81,841.4K 35,828.4K
AMZN 90.53 – 0.49 77,330.8K 64,807.4K
SPY 379.95 + 0.96 68,105.3K 82,418.8K
** % Change here refers to price vs previous day price


WALL ST TOP FLOWS

TICKER LAST PRICE

VOLUME

% CHANGE FUNDS FLOW $
TSLA 197.08 93,582.3K + 17.42 18,443.2M
AAPL 138.92 83,234.4K – 10.19 11,562.9M
META 96.72 81,841.4K + 24.90 7,915.7M
MSFT 227.87 33,462.5K – 0.91 7,625.1M
AMZN 90.53 77,330.8K – 13.62 7,000.8M
NVDA 143.01 40,939.2K – 28.96 5,854.7M
AMD 63.08 62,668.6K – 30.69 3,953.1M
GOOGL 88.49 33,997.1K – 13.41 3,008.4M
GOOG 88.65 26,838.1K – 19.06 2,379.2M
NFLX 258.60 7,919.0K – 49.93 2,047.9M
** % change here refers to volume vs. 20 days average volume.


TOP 5 BLOCK ORDERS

TICKER PRICE TYPE VOL/OI FUNDS FLOW
SBUX 90.45 stock/options 263.50 921.5M
CHPT 11.93 stock/options 227.88 145.0M
AFRM 15.63 stocks/options 90.48 217.0M
CC 2,506.00 Cocoa futures 81,381 203.9M
ZS 1,450.20 Soybean futures 70,010 101.5M


OUR PICK – No New Pick

We stay on the sideline for now. Expecting choppy markets as the US geared up for the midterm election, we decided to stay on the sideline 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.

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