By Abdul H. Jaffar STATE OF THE MARKETS
Stocks, Dollar tumbled as yields jumped. US stocks were sold off on Monday as sentiments turned sour after the homebuilders index slid to 36 points, the lowest since mid-2012, stoking fears of recession that saw yields jump higher across the board. The tech-laden Nasdaq (-1.49%) fell the most, followed by Russell (-1.41%), S&P (-0.90%) and Dow (-0.49%) as the Dollar index pulled back further near the 104 handle. The shorter 2Y yield jumped to 4.26% while the 10Y benchmark punched 3.70% on early Tuesday trading after news of sudden yield cap raises by the Bank of Japan roiled global bond markets.
In the commodity markets, crude oil rebounded and closed above the $75.80/bl barrier as investors continue to weigh EIA projection of increasing demand in 2023 as China continues to re-open and eased its zero-covid policy. Gold pulled back below $1,787.50/oz on Dollar strength but mayhem in the bond markets sent the precious metal back above the $1,800/oz major handle as investors flock to safety. Elsewhere, iron ore continues to fall deeper near $109.50/tn as recession fears continue to stoke demand concerns for major commodities.
In the FX space, overall sentiments turned bearish as Yen seized the helm of demand across all horizons alongside Swiss, Euro and Loonie in the short and medium term accounts as Sterling, Aussie and Kiwi continue to weaken further in demand.
On Tuesday, markets expect to be under pressure as investors continue to weigh the new BoJ yield’s cap while waiting for earning releases from Nike (NKE), General Mills (GIS), Factset Research (FDS), FedEx (FDX), Worthington Industries (WOR), BlackBerry (BB) and FuelCell Energy (FCEL) as well as the latest figures in the US housing starts and permits.
G8 CURRENCIES SENTIMENTS
| ST | JPY | CHF | CAD | EUR | USD | GBP | AUD | NZD | ST |
| MT | JPY | CHF | EUR | CAD | USD | NZD | GBP | AUD | MT |
| LT | JPY | NZD | GBP | EUR | CHF | USD | AUD | CAD | 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 | 18.27 | – 4.14 | 153,741.3K | 209,836.1K |
| TSLA | 149.87 | – 0.24 | 139,390.6K | 79,740.4K |
| SLNO | 1.85 | + 103.86 | 104,844.4K | 87,913.2K |
| SQQQ | 52.31 | + 4.12 | 100,622.6K | 134,510.7K |
| VKTX | 6.99 | + 73.88 | 96,312.3K | 673,307.9K |
| F | 11.69 | – 3.55 | 87,935.5K | 61,138.0K |
| AMZN | 84.92 | – 3.35 | 83,531.4K | 70,617.8K |
| SOXL | 10.69 | – 3.78 | 82,341.4K | 109,328.4K |
| AAPL | 132.37 | – 1.59 | 79,592.6K | 85,107.4K |
| SPY | 380.02 | – 0.85 | 79,162.6K | 86,818.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 149.87 | 139,390.6K | + 34.68 | 20,890.5M |
| AAPL | 132.37 | 79,592.6K | + 3.90 | 10,535.7M |
| MSFT | 240.45 | 29,696.4K | + 2.06 | 7,140.5M |
| AMZN | 84.92 | 83,531.4K | + 9.32 | 7,093.5M |
| NVDA | 162.54 | 35,403.8K | – 16.33 | 5,754.5M |
| META | 114.48 | 29,769.9K | – 9.35 | 3,408.0M |
| AMD | 64.59 | 46,246.9K | – 21.58 | 2,987.1M |
| GOOGL | 88.44 | 29,493.0K | + 1.61 | 2,608.4M |
| MDGL | 234.83 | 8,816.6K | + 955.01 | 2,070.4M |
| GOOG | 89.15 | 23,020.5K | – 5.61 | 2,052.3M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| KMX | 58.09 | stock/options | 97.10 | 250.1M |
| AIG | 61.47 | stock/options | 63.96 | 415.4M |
| AAPL | 132.37 | stocks/options | 49.16 | 10,535.7M |
| NQ | 11,193.25 | NASDAQ futures | 555,668 | 6,219.7M |
| ES | 3,845.50 | S&P futures | 1,328,539 | 5,108.9M |
OUR PICK – No New Pick
We stay on the sideline for now. Greater uncertainties plague the markets after BoJ decided to raise its yields’ cap that saw Yen jump in demand. Markets are currently repricing Yen related assets and we decided to stay on the sideline until after the storm subsides as VIX on strong support around the 22 points.
For 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.