By MFM Team STATE OF THE MARKETS
Stocks slipped on late tax selling. US stocks slipped on late selling Thursday as investors hope to avoid paying higher capital gains taxes next year. Main profit taking was seen in energy, technology and industrials, while defensive sectors like consumer discretionary, communication and utilities continue to outperform.
Dow (-0.25), S&P (-0.30%), Nasdaq (-0.16%) and Russell (-0.02%) all posted negative as funds flowed back to bonds and cash. The 10Y benchmark yielded lower to 1.50% while the Dollar (DXY) regained the 96 handle.
In the commodities market, bidders pushed crude higher to above $77.20/bl before profit taking sent the black gold lower to settle at $76.25/bl. Inflation concerns continue to lift gold as it was fixed higher to $1,815/oz when London closed. Elsewhere, Iron stalled at $112.34/tn as traders waited for new catalysts.
In the FX space, short to medium term traders turned bearish as Swiss commanded more demand while Kiwi was sent to offers. With Japanese tax seasons coming soon, short term traders were seen buying more Yen than Euro. Long term sentiments were little changed. No news on Friday as markets geared towards 2022. Happy New Year!
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G8 CURRENCIES SENTIMENTS
| ST | CAD | AUD | GBP | CHF | NZD | USD | JPY | EUR | ST |
| MT | CHF | GBP | CAD | AUD | EUR | NZD | USD | JPY | MT |
| LT | CHF | GBP | AUD | EUR | USD | JPY | CAD | NZD | 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 |
| NIO | 32.42 | + 14.76 | 137,245.8K | 40,950.7K |
| KPRX | 1.70 | + 93.18 | 121,002.3K | 1,269.1K |
| SQQQ | 5.81 | + 0.87 | 76,223.3K | 124,761.6K |
| AAPL | 178.20 | – 0.66 | 59,773.0K | 86,948.8K |
| SPY | 476.16 | – 0.28 | 55,329.0K | 75,272.0K |
| F | 20.47 | – 0.44 | 51,470.1K | 83,119.8K |
| CCL | 20.53 | – 1.25 | 49,120.2K | 36,895.2K |
| FTFT | 1.53 | + 24.39 | 48,741.0K | 2,541.7K |
| FXI | 36.99 | + 3.64 | 48,073.5K | 27,474.5K |
| BABA | 122.99 | + 9.72 | 45,437.1K | 24,274.3K |
** % Change here refer to price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 1,070.34 | 15,680.3K | – 33.81 | 16,783.3M |
| AAPL | 178.20 | 59,773.0K | – 46.37 | 10,651.5M |
| NVDA | 295.86 | 30,886.4K | – 40.09 | 9,138.1M |
| AMD | 145.15 | 44,357.9K | – 16.47 | 6,438.5M |
| AMZN | 3,372.89 | 1,879.1K | – 35.50 | 6,338.0M |
| BABA | 122.99 | 45,437.1K | + 70.36 | 5,588.3M |
| MSFT | 339.32 | 15,994.4K | – 44.33 | 5,427.2M |
| NIO | 32.42 | 137,245.8K | + 139.23 | 4,449.5M |
| FB | 344.36 | 10,593.3K | – 46.37 | 3,647.9M |
| GOOGL | 2,924.01 | 784.3K | – 44.79 | 2,293.3M |
** % change here refers to volume
TOP 5 BLOCK ORDERS
| SYMBOL | PRICE | TYPE | R/VOL | FUNDS FLOW $ |
| ELAN | 28.71 | equities | 15.1M | 71.3M |
| MQ | 17.39 | equities | 10.1M | 68.7M |
| HTZ | 24.33 | equities | 10.0K | 131.7M |
| ZN | 130.0800 | US bond futures | 2,100 | 27,316.8M |
| CL | 71.40 – 76.80 | crude oil futures | 1,094 | 81.3M |
OUR PICK – No New Picks
No new picks going into the new year weekend. Late funds flow as of 29/12 reported a net inflow of $12.2 billion into the US equities, $5.8 billion to taxable bond funds and a massive $31 billion to short term money markets. Apparently, smart money is moving into the short term safety while selling into big caps winners. Retails continue to support this selling, hence higher prices on light volume.
Trades updates:
Equities: Currently we are holding 8 stocks – 7 longs and 1 short. We are long AUY (21% undervalued) with dividends yielding 2.86%, T (15% undervalued) at 8.39% yields and COG (CTRA) (16% undervalued) yielding 2.56%. CLVS is currently 21% overvalued with -7.19 z-score but Tudor Investment had stepped in recently and we decided to hold. We remain bullish with VIPS (48% undervalued with 5.59 z-score), GT (39% undervalued with 1.28 z-score) and CRON (12% undervalued with 9.18 z-score) while bearish GE (13% overvalued with 1.43 z-score).
FX & Commodities: Crude buy limit was canceled.
We thank you for reading our thoughts along the year and wish you a profitable and prosperous 2022. Happy New Year!
| HORIZON | STRATEGY | SL | TP1 | TP2 |
| Short-Term | – | – | – | – |
| Medium-Term | – | – | – | – |
| Long-Term | – | – | – | – |
Risk Disclaimer:
This article is for general information purpose only. It is not an investment advice or a solicitation to buy or sell any securities/oz. 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.
Abdul H. Jaffar