By MFM Team STATE OF THE MARKETS
Stocks slipped as inflation hit 40-year high. US stocks lost bids on Thursday, alongside US treasuries, while Dollar was on whipsawed trading after the Labor Department said the consumer price index in January reached its highest level since February 1982. Dow (-1.47%), Nasdaq (-2.10%), and S&P (-1.81%) including Russell (-1.55%) fell lower on negative breadth with 68% declining volume on the NYSE and 72% of the NASDAQ. The 10Y bonds lost demand sending yields past 2% as the Dollar climbed to the 95.80 barrier.
In the commodities market, profit taking continued to roll in crude and iron ore, with crude little changed at $88.85/bl while iron ore pulled back deeper to $147.65/tn. Gold spiked to as high as $1,841.80 upon the inflation reports before settling lower around $1,826.60/oz after Feds Bullard’s comment on more rate hike.
In the FX space, King Dollar returned to reign in demand while ousting Kiwi and Aussie to offers in the short term accounts. Aussie and Kiwi, however, maintain leads in the medium term accounts. In the long term accounts, Dollar and Yen advanced to demand while sending Loonie to the back burner.
On Friday, markets look for earnings reports from Enbridge (ENB), Dominion Energy (D), Apollo Global (APO), Fortis (FTS) and Cleveland Cliffs (CLF) as well as the latest US consumer sentiments.
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G8 CURRENCIES SENTIMENTS
| ST | USD | GBP | EUR | CHF | CAD | NZD | AUD | JPY | ST |
| MT | EUR | AUD | NZD | USD | GBP | CAD | CHF | JPY | MT |
| LT | EUR | USD | GBP | JPY | CAD | CHF | AUD | 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 |
| SPY | 449.32 | – 1.80 | 140,071.5K | 87,377.7K |
| TQQQ | 58.82 | – 6.63 | 127,057.4K | 100,577.5K |
| SQQQ | 38.03 | + 6.65 | 122,195.6K | 38,723.8K |
| UVXY | 14.06 | + 13.94 | 120,005.6K | 56,635.2K |
| UBER | 37.75 | – 6.07 | 113,898.6K | 27,566.2K |
| QQQ | 358.43 | – 2.26 | 112,375.9K | 59,345.8K |
| AMD | 125.77 | – 5.33 | 108,939.8K | 64,764.0K |
| AMC | 18.59 | – 1.85 | 98,918.8K | 44,887.4K |
| AAPL | 172.12 | – 2.36 | 90,865.9K | 92,030.6K |
| SOXS | 4.13 | + 9.26 | 88,610.2K | 30,138.8K |
** % Change here refer to price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 904.55 | 22,042.2K | – 283.96 | 19,938.3M |
| AAPL | 172.12 | 90,865.9K | – 10.33 | 15,639.8M |
| MSFT | 302.38 | 45,386.2K | – 5.44 | 13,723.9M |
| AMD | 125.77 | 108,939.8K | + 12.32 | 13,701.4M |
| NVDA | 258.24 | 51,319.9K | – 3.83 | 13,252.9M |
| FB | 228.07 | 49,310.3K | + 3.66 | 11,246.2M |
| AMZN | 3,180.07 | 3,413.4K | – 30.65 | 10,854.9M |
| DIS | 152.16 | 42,500.3K | + 175.95 | 6,466.8M |
| GOOGL | 2,772.40 | 1,966.5K | – 21.29 | 5,451.9M |
| AFRM | 58.68 | 86,940.3K | + 367.66 | 5,101.7M |
** % change here refers to volume
TOP 5 BLOCK ORDERS
| SYMBOL | PRICE | TYPE | R/VOL | FUNDS FLOW $ |
| AES | 22.35 | equities | 176.29 | 157.0M |
| VICI | 28.37 | equities | 72.73 | 169.9M |
| FB | 228.07 | equities | 57.38 | 11,220.7M |
| ZT | 107.3188 | US bonds futures | 6,000 | 64,391.3M |
| CL | 81.11 – 91.30 | crude oil futures | 3,675 | 331.1M |
OUR PICK – No New Pick
No new pick going into the weekend. Inflation hit a 40-year high and many thought this would be the top up before it recedes. The Feds have to raise rates next month to contain this inflation following what BoE has done recently. However, BoE does not have a big balance sheet like Feds, so it would be interesting to see how Feds navigate these uncharted territories. Another thing of importance to note is growth seems to be tanking as evident is the Russell 2000 chart. More on that later.
Trades updates:
Equities: GE was stopped with small profits, CLVS was stopped at a loss. We remain bullish on AUY (22% undervalued) with dividends yielding 2.94%, COG (CTRA) (16% undervalued) yielding 2.17%, T (16% undervalued) at 8.58% yields, VIPS (44% undervalued with 5.98 z-score), GT (38% undervalued with 1.40 z-score) and CRON (20% undervalued with 9.18 z-score).
FX & Commodities: We remain bearish EUR/JPY and GBP/USD and may re-enter on new setups.
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| 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