Vaccines And Stimulus Hopes Dominate Markets

STATE OF THE MARKETS

Vaccines and stimulus hopes dominate markets. News that the UK was getting ready to deploy covid-19 vaccine developed by Pfizer and BioNTech as well as hopes that bipartisan US$908b stimulus would pass the US congress, drove major stock indexes higher on Tuesday. On the other hand, about $2b flows into US bond options, betting that yield will continue to fall as more demand for bonds safety continues.

Crude continues to edge lower, closing below $45.60 as reports shows that demand is still below normal in these times of the year. With winter coming and restricted travel imposed, investors do not see how price can be supported at current levels. Gold climbed higher to close above $1,870 but retreated on profit taking in early Wednesday Asian trading.

In the FX space, safe-haven Yen was sent to the back seat in the short-term but remain elevated in the mid-term. Swiss that has also edged higher in all three horizons, signaled a turn of tide in investors sentiments is on the way. Sterling and Kiwi remain suppressed in the mid-term, suggesting any rebound in short term is an opportunity to short.

G8 CURRENCIES SENTIMENTS

** ST refers to Short-Term which is daily turnover, MT is Medium Term which is 
weekly and LT refers to Long-Term which is monthly turnover.

WALL ST MOST ACTIVE

** % Change here refer to price vs previous day price

WALL ST TOP FLOWS

** % change here refers to volume vs. 20 days average volume.

TOP 5 BLOCK ORDERS

OUR PICK – Cisco (CSCO, NASDAQ)

It’s time to take profits and trim exposure. On October 28th we picked CSCO and since then price has moved in our favor. The stock has closed above 61.8% of it’s long term downtrend retracement (high of 2000 to low of 2002), circa $41.50, and now looking forward to closing the Aug – Sept, 2020 gap. Short-term and mid-term buyers were stopped out but long-term remain intact. If you manage to re-renter on the long term view, then holding is the next best options with new stop below the monthly pivot, circa $40.58, while 21 days VPOC is around $38.75. In Q3 2020, Bank New York Mellon, UBS and Wells Fargo among others were seen to reduce their holdings; while Morgan Stanley, Deutsche Bank, and Bank of America among others had increased their holdings. We have revised our long term targets with the new market dynamics.

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.