By Abdul H. Jaffar STATE OF THE MARKETS
Stocks edged higher amid short covering. US stocks edged higher on Tuesday ahead of the holiday weekend that saw many short covering after the Bank of Japan surprised the bond markets with a raise in its yield cap. Dow (+0.28%), S&P (+0.10%) and Nasdaq (+0.01%), including Russell (+0.54%) closed in the green as yields continue to jump higher across the board. The shorter 2Y yields punched 4.31% before settling around 4.27% while the 10Y benchmark jumped to 3.70% as the Dollar index continued to flirt near the 104 handle.
In the commodity markets, crude oil remained resilient as worries of the coming winter storm might disrupt supplies like Texas freeze in February 2021. The black gold settled near $76/bl as New York closed. Gold climbed higher, nearing $1,821/oz amid flight to safety as investors see higher risk of global recession in 2023 though iron ore climbed higher to $109.80/tn.
In the FX space, Yen continued to reign across all horizons alongside Swiss in the short and medium term while King Dollar advanced into the demand territories. Long term sentiments were little changed.
On Wednesday, markets expected to remain volatile as investors continue to position their portfolio ahead of the holiday weekend. Earnings releases to watch includes Micron Tech (MU), Cintas Corp (CTAS), Toro (TTC), Carnival Corp (CCL), Miller Knol (MLKN) and Rite Aid (RAD) as well as the latest figures in the US mortgage applications, home sales and consumer confidence. EIA petroleum status will be in the spotlight for energy traders.
G8 CURRENCIES SENTIMENTS
| ST | JPY | CHF | CAD | USD | EUR | AUD | GBP | NZD | ST |
| MT | JPY | CHF | USD | EUR | CAD | GBP | AUD | NZD | 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 | 18.19 | – 0.44 | 172,912.4K | 210,836.1K |
| TSLA | 137.80 | – 8.05 | 159,563.2K | 81,340.4K |
| ICCM | 2.60 | + 177.60 | 130,969.9K | 1,913.2K |
| SQQQ | 52.53 | + 0.42 | 97,762.7K | 134,310.7K |
| SOXL | 10.41 | – 2.25 | 88,346.3K | 109,817.9K |
| F | 11.47 | – 1.88 | 82,112.0K | 61,710.8K |
| AAPL | 132.30 | – 0.05 | 77,432.8K | 85,449.0K |
| SPY | 380.54 | + 0.14 | 74,403.6K | 87,228.4K |
| AMZN | 85.19 | + 0.32 | 74,348.3K | 71,443.9K |
| AMD | 65.05 | + 0.71 | 52,431.2K | 77,518.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 137.80 | 159,563.2K | + 49.36 | 21,987.8M |
| AAPL | 132.30 | 77,432.8K | – 0.13 | 10,244.4M |
| NVDA | 160.85 | 40,325.9K | – 4.68 | 6,486.4M |
| AMZN | 85.19 | 74,348.3K | – 2.06 | 6,333.7M |
| MSFT | 241.80 | 25,150.8K | – 13.38 | 6,081.5M |
| AMD | 65.05 | 52,431.2K | – 11.16 | 3,410.7M |
| META | 117.09 | 28,742.5K | – 13.06 | 3,365.5M |
| GOOGL | 89.02 | 23,453.8K | – 19.45 | 2,087.9M |
| NFLX | 288.19 | 6,918.1K | – 26.27 | 1,993.7M |
| GOOG | 89.63 | 21,976.8K | – 10.49 | 1,969.8M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| DB | 11.17 | stock/options | 77.50 | 79.1M |
| INTC | 26.44 | stock/options | 57.94 | 842.5M |
| ROKU | 43.00 | stocks/options | 57.09 | 314.5M |
| YM | 33,231.00 | DOW futures | 11,255 | 374.1M |
| NQ | 11,226.50 | NASDAQ futures | 31,559 | 354.5M |
OUR PICK – Crude Oil
Gearing for winter freeze. Prospect of a winter storm this weekend in North America might see a return of the Texas freeze that would disrupt supplies and push crude oil higher. Prices have already jumped and we see a return to at least $85/bl in the medium term.
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 | Buy | 75.00 | 80.90 | 83.20 |
| Medium-Term | Buy | 74.00 | 83.20 | 85.45 |
| Long-Term | Flat | – | – | – |
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.