By MFM Team STATE OF THE MARKETS
Stocks mixed as earnings disappointed. US stocks closed mixed on Thursday after big names of JP Morgan (JPM), Morgan Stanley (MS) and Conagra (CGA) reported falling earnings that missed estimates. Russell (-1.07%) fell the most, followed by Dow (-0.46%) and S&P (-0.30%) while Nasdaq (+0.03%) managed to eke minor gains as the Dollar index spiked to past the 109.20 barrier. As at writing, 1Y (3.18%) yields more than the 2Y (3.13%), 5Y (3.05%), 10Y (2.94%) and even the 30Y (3.09%).
In the commodity markets, crude rebounded to close around $93.60/bl as short sellers took profits while Dollar strength continued to weigh on gold and iron ore. Gold settled around $1,709.70/oz while iron ore tumbled to $106.00/tn as New York closed.
In the FX space, demand for King Dollar remains elevated across the board though Kiwi and Aussie have seized the helm in the short term accounts. Short and medium term accounts continue to sell Yen while long term investors demand more.
On Friday, markets may look to bargain hunt in value names while looking for earnings from United Health (UNH), Wells Fargo (WFC), Black Rock (BLK), Citigroup (C), US Bancorp (USB), Progressive (PGR), PNC Financial (PNC), Bank of New York Mellon (BK) and State Street (STT). Market moving economic calendar includes retail sales, consumer sentiment and industrial production.
G8 CURRENCIES SENTIMENTS
| ST | NZD | AUD | USD | EUR | GBP | CHF | CAD | JPY | ST |
| MT | USD | CAD | NZD | CHF | AUD | GBP | EUR | JPY | MT |
| LT | USD | CHF | JPY | CAD | NZD | GBP | EUR | AUD | 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 |
| GOEV | 4.61 | + 29.13 | 184,905.0K | 5,012.4K |
| TQQQ | 25.45 | + 1.03 | 175,823.5K | 154,768.6K |
| SQQQ | 54.53 | – 1.07 | 114,668.5K | 112,518.1K |
| SPY | 377.91 | – 0.24 | 89,704.8K | 98,027.2K |
| AMD | 78.60 | + 1.39 | 83,453.5K | 104,550.7K |
| SOXL | 14.07 | + 5.87 | 78,227.9K | 56,222.4K |
| AAPL | 148.47 | + 2.05 | 78,088.5K | 92,673.8K |
| IS | 3.28 | 0.00 | 68,034.5K | 8,243.8K |
| ITUB | 4.00 | – 2.44 | 66,938.7K | 48,534.7K |
| UVXY | 13.45 | + 0.45 | 66,117.5K | 69,061.0K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 714.94 | 26,141.1K | – 16.55 | 18,689.3M |
| AAPL | 148.47 | 78,088.5K | – 1.91 | 11,593.8M |
| NVDA | 153.72 | 45,582.3K | – 11.06 | 7,006.9M |
| AMD | 78.60 | 83,453.5K | – 7.26 | 6,559.4M |
| MSFT | 254.08 | 25,091.3K | – 8.59 | 6,375.2M |
| AMZN | 110.63 | 51,124.1K | – 25.59 | 5,655.9M |
| GOOGL | 2,207.35 | 1,849.5K | – 3.17 | 4,082.5M |
| META | 158.05 | 23,745.5K | – 23.65 | 3,753.0M |
| BABA | 103.76 | 35,297.6K | + 35.49 | 3,662.5M |
| GOOG | 2,228.80 | 1,616.3K | + 1.45 | 3,602.4M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| AXL | 7.49 | stock/options | 63.38 | 10.0M |
| FIS | 92.17 | stock/options | 59.33 | 315.1M |
| BBBY | 4.73 | stocks/options | 59.14 | 36.8M |
| YM | 30,615 | DOW futures | 6,087 | 186.5M |
| NQ | 11,812.50 | NASDAQ futures | 15,085 | 178.5M |
OUR PICK – No New Picks
No new picks going into the weekend. Disappointing earnings and talks of higher rates to contain inflation does not bode well with investors that remain skeptical of soft landing by the Fed. With yields going haywires, it’s more than likely it’s going to get worse before it gets better. Higher short term yields saw more funds flowing into money markets (+$9.37b) and taxable bond funds (+$1.63b) while long term investors continued to exit the US stocks (-$1.15b) market.
Trades updates:
Equities: VIPS (30% undervalued with 4.73 z-score), T (6% undervalued, 5.46% yields) pulled back this week while CRON (20% undervalued with 27.82 z-score) rebound higher as markets look to find its bottom. We still see M (48% undervalued, 3.87% yields) and WBA (31% undervalued, 5.21% yields) offer better opportunities for long term investors.
FX & Commodities: NZD/CHF reached short term TP2/medium term TP1 and stop updated to 0.5940, USD/CAD didn’t work out as planned and we remain bullish CAD/JPY.
For more 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.
Abdul H. Jaffar