By MFM Team STATE OF THE MARKETS
Equities plunged, S&P dragged into bear territory. Global equities plunged on Monday after news of speculation that the Federal Reserves might hike more than expected this Wednesday. Major indexes from Nikkei (-1.32%), FTSE (-0.59%), Stoxx (-1.01%) to Dow (-2.79%) and Nasdaq (-4.68%) closed in the red while the S&P 500 officially fell into the bear market. Stocks and bonds were dumped, sending yields and Dollar higher, with the 10Y maturities hit 3.44% and the Dollar index broke the 105.20 barrier.
In the commodities market, crude was under profit taking but remained resilient and settled around $118.45 as New York closed. Gold that staged earlier gains tumbled and closed lower around $1,818.85/oz after news of aggressive hikes that sent the Dollar into demand overdrive. Similarly, iron ore tumbled into $140.35/tn.
In the FX space, King Dollar seized the helm of demand across all horizons alongside Loonie, Yen and Swiss. Overall sentiments were bearish as Aussie and Kiwi were on offers across the board.
On Tuesday, markets will remain cautious ahead of the FOMC meeting while looking forward to reading earning reports from Core & Main (CNM), Sprinklr (CXM), Motorcar parts of America (MPAA), ReNew Energy (RNW), Kaspien (KSPN) and Tuya Inc (TUYA) as well as the latest figures on US small business optimism index and final demand in producer price index.
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G8 CURRENCIES SENTIMENTS
| ST | USD | JPY | CAD | CHF | EUR | NZD | GBP | AUD | ST |
| MT | USD | CAD | JPY | EUR | GBP | CHF | AUD | NZD | MT |
| LT | USD | CAD | CHF | EUR | GBP | AUD | NZD | 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 | 23.08 | – 13.85 | 213,314.9K | 135,769.2K |
| SPY | 375.00 | – 3.80 | 169,998.9K | 105,218.3K |
| SQQQ | 64.21 | + 13.61 | 155,699.7K | 108,767.6K |
| HYG | 73.10 | – 3.35 | 122,714.6K | 43,275.2K |
| AAPL | 131.88 | – 3.83 | 122,120.5K | 93,360.7K |
| UVXY | 17.80 | + 20.35 | 116,286.9K | 78,071.6K |
| XLF | 31.56 | – 2.98 | 104,066.8K | 69,808.7K |
| AMZN | 103.67 | – 5.45 | 99,223.3K | 86,095.6K |
| AMD | 86.99 | – 8.26 | 98,117.1K | 111,679.9K |
| QQQ | 275.41 | – 4.65 | 94,393.5K | 78,346.4K |
** % Change here refer to price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 647.21 | 34,186.6K | + 9.68 | 22,125.9M |
| AAPL | 131.88 | 122,120.5K | + 31.34 | 16,105.3M |
| MSFT | 242.26 | 46,127.3K | + 51.45 | 11,174.8M |
| AMZN | 103.67 | 99,223.3K | + 1.93 | 10,286.5M |
| NVDA | 156.47 | 60,377.4K | + 1.88 | 9,447.3M |
| AMD | 86.99 | 98,117.1K | – 17.05 | 8,535.2M |
| GOOGL | 2,127.85 | 2,361.6K | + 25.31 | 5,025.1M |
| GOOG | 2,137.53 | 1,837.3K | + 17.40 | 3,927.3M |
| BABA | 98.52 | 36,380.2K | + 10.46 | 3,584.2M |
| XOM | 95.85 | 33,414.6K | + 21.25 | 3,202.8M |
** % change here refers to volume
TOP 5 BLOCK ORDERS
| SYMBOL | PRICE | TYPE | R/VOL | FUNDS FLOW $ |
| CHPT | 12.08 | equities/options | 181.74 | 30.8M |
| NKLA | 5.23 | equities/options | 137.58 | 8.8M |
| AAPL | 131.88 | equities/options | 113.34 | 2,608.3M |
| YM | 30,591.00 | DOW futures | 4,203 | 128.6M |
| CC | 2,380.00 | Cocoa futures | 46,828 | 110.5M |
OUR PICK – No New Pick
We stay on the sideline. Recession fears continue to plague the broad market right now as yields inversions are getting worse. As at writing, the 3Y (3.46%), 5Y (3.46%) yields more than 7Y (3.43%) and 10Y (3.34%) while the 30Y stood at 3.35%. As expected VIX jumped off 24 and currently above 33. As major FX moves already happened, we decided to stay on the sideline for now.
For high probability picks, please use our Trading Central services.
| 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