By Abdul H. Jaffar STATE OF THE MARKETS
Stocks in limbo amid recession fears. US stocks closed mixed on Tuesday as investors were cautious ahead of a heavy slate of economic data and speech by the Federal Reserve’s Chair on Wednesday. The blue chip Dow (+0.01%) edged higher with the small cap Russell (+0.31%), while the tech laden Nasdaq (-0.59%) and S&P (-0.16%) closed lower as the yields between the shorter 2Y (4.48%) and 10Y (3.75%) benchmark inverted to new extremes since the 80’s. Fears continue to dominate demand in Dollar as the index continues to surge at the 106 handle and settle above the 106.80 barrier.
In the commodity markets, crude oil continues to rebound past $78.80/bl as investors hope for renewed demand from China as the country reconsiders easing on the zero Covid policy. Fears sent gold higher to erase earlier losses and back above $1761.50/oz as at writing. Elsewhere, iron ore continues to stall around the $93/tn handle as markets wait for the next catalysts.
In the FX space, easing of protest in China sent bullish sentiments across markets as demand for Aussie and Kiwi continued to reign while Yen pulled back in the short term. Weakness in crude oil continues to weigh on Loonie as the commodity currency continues to be on offer. Sterling was seen synchronizing across all horizons, a signal that the currency may soon turn around as King Dollar flipped to demand.
On Wednesday, markets expected to remain volatile as investors continue to rebalance their portfolio as the month comes to an end. Earnings releases to watch includes Royal Bank of Canada (RY), Salesforce (CRM), Synopsys (SNPS), Snowflake (SNOW), Hormel Foods (HRL), Splunk (SPLK), Five Below (FIVE) and Pure Storage (PSTG) as well as the latest figures in the US mortgage applications, GDP, jobs opening, and ADP employment reports. EIA petroleum status will be in the spotlight for energy traders.
G8 CURRENCIES SENTIMENTS
| ST | NZD | AUD | USD | GBP | EUR | JPY | CHF | CAD | ST |
| MT | JPY | NZD | AUD | GBP | EUR | CHF | USD | CAD | MT |
| LT | NZD | JPY | AUD | GBP | CHF | EUR | CAD | USD | 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 | 20.77 | – 2.40 | 137,112.4K | 200,536.1K |
| SQQQ | 47.92 | + 2.33 | 93,429.2K | 133,940.4K |
| AAPL | 141.17 | – 2.11 | 83,669.9K | 82,613.2K |
| TSLA | 180.83 | – 1.14 | 83,218.9K | 77,010.7K |
| SOXL | 11.73 | – 0.93 | 74,746.3K | 102,817.9K |
| AMZN | 92.42 | – 1.63 | 65,429.5K | 68,510.8K |
| LABU | 6.60 | + 1.23 | 65,013.1K | 52,749.0K |
| FXI | 26.85 | + 5.09 | 58,001.8K | 35,928.4K |
| SPY | 395.23 | – 0.17 | 52,248.5K | 82,743.9K |
| AMD | 73.39 | + 0.27 | 51,811.0K | 82,618.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 180.83 | 83,218.9K | – 6.29 | 15,048.5M |
| AAPL | 141.17 | 83,669.9K | + 3.71 | 11,811.7M |
| AMZN | 92.42 | 65,429.5K | – 32.28 | 6,047.0M |
| NVDA | 156.39 | 29,812.8K | – 40.59 | 4,662.4M |
| MSFT | 240.33 | 17,948.3K | – 36.77 | 4,313.5M |
| AMD | 73.39 | 51,811.0K | – 34.96 | 3,802.4M |
| META | 109.46 | 23,876.0K | – 53.20 | 2,613.5M |
| UNH | 528.00 | 3,750.9K | + 10.52 | 1,980.5M |
| GOOG | 95.44 | 20,210.7K | – 28.27 | 1,928.9M |
| BABA | 79.86 | 24,151.6K | – 17.54 | 1,928.7M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| GRWG | 6.19 | stock/options | 168.52 | 20.8M |
| PCG | 15.17 | stock/options | 99.66 | 165.7M |
| SBUX | 98.66 | stocks/options | 73.17 | 436.4M |
| ZS | 1,459.40 | Soybean futures | 81,171 | 118.5M |
| ZC | 669.40 | Corn futures | 167,826 | 112.4M |
OUR PICK – No New Pick
We stay on the sideline for now. With two trades stopped out recently – Crude Oil and NZD/USD – and choppy markets ahead of the NFP Friday, we decided to stay on the sideline for now.
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.
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