By Abdul H. Jaffar 
STATE OF THE MARKETS
Stocks rallied ahead of CPI. US stocks rallied on Wednesday as investors turned optimistic on the CPI report scheduled on Thursday. Nasdaq (+1.76%), S&P (+1.28%) and Russell (+1.17%) made more than 1% gain while Dow (+0.80%) broke last week high as some cautious investors flock into bonds and send yields lower. The shorter 2Y dropped to 4.21% while the 10Y benchmark fell to 3.53% as the Dollar index struggled to float above the 103 handle.
In the commodity markets, crude oil jumped near $78/bl despite rising inventories as investors see higher demand from China after its border reopening. Flight to safety continued to press gold higher, near $1,886.50/oz, as New York closed. Elsewhere, iron ore continues its upward trajectory to hit $121/tn as investors continue to bid the commodity higher.
In the FX space, short term traders were quick to buy the oversold Yen but kept Swiss on offers alongside Kiwi and King Dollar. In the medium term, Dollar and Yen remained sold off while Euro and Swiss advanced further into the demand territories. Long term sentiments were little changed with more demand for Aussie and Sterling than Swiss and Kiwi.
On Thursday, markets may remain choppy as traders and investors positioned themselves for the inflation reports. CME FedWatch projects a 75% probability of a 25 points hike in February and a pause in March that may keep the floor in equities for now. Any upbeat surprise in CPI numbers today may spike the Dollar up and put pressure on equities. Earnings releases to watch include Taiwan Semiconductor (TSM) and Washington Federal (WAFD) as well as the latest US jobless claims and the much awaited inflation data.
G8 CURRENCIES SENTIMENTS
| ST | JPY | EUR | AUD | CAD | GBP | USD | NZD | CHF | ST |
| MT | EUR | CAD | AUD | GBP | NZD | CHF | JPY | USD | MT |
| LT | JPY | EUR | AUD | CHF | GBP | NZD | 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 |
| BBBY | 3.49 | + 68.60 | 232,470.5K | 15,518.3K |
| TSLA | 123.22 | + 3.68 | 183,488.9K | 100,113.6K |
| TQQQ | 19.41 | + 4.98 | 149,182.3K | 218,819.6K |
| AMZN | 95.09 | + 5.81 | 102,738.3K | 74,308.8K |
| IEMG | 50.19 | + 0.54 | 90,023.6K | 16,541.8K |
| SQQQ | 47.46 | – 5.14 | 85,913.2K | 132,448.5K |
| SOXL | 12.40 | + 3.59 | 79,728.5K | 115,440.7K |
| GOVT | 23.19 | + 0.39 | 72,413.6K | 14,349.4K |
| AAPL | 133.49 | + 2.11 | 69,367.1K | 87,356.1K |
| SPY | 395.52 | + 1.26 | 68,677.9K | 88,742.8K |
** % Change here refers to price vs previous day price
WALL ST TOP FLOWS
| TICKER | LAST PRICE |
VOLUME |
% CHANGE | FUNDS FLOW $ |
| TSLA | 123.22 | 183,810.7K | + 3.81 | 22,649.2M |
| AMZN | 95.09 | 103,126.1K | + 35.39 | 9,806.3M |
| AAPL | 133.49 | 69,458.9K | – 18.34 | 9,272.1M |
| MSFT | 235.77 | 28,669.3K | – 11.26 | 6,759.4M |
| NVDA | 160.01 | 35,328.4K | – 16.45 | 5,652.9M |
| META | 132.89 | 25,423.0K | – 13.56 | 3,378.5M |
| NFLX | 327.26 | 9,579.6K | + 10.50 | 3,135.0M |
| AMD | 69.06 | 44,470.0K | – 14.78 | 3,071.1M |
| BABA | 115.02 | 22,804.4K | – 4.01 | 2,623.0M |
| GOOGL | 91.52 | 26,861.9K | – 10.55 | 2,458.4M |
** % change here refers to volume vs. 20 days average volume.
TOP 5 BLOCK ORDERS
| TICKER | PRICE | TYPE | VOL/OI | FUNDS FLOW |
| GOOG | 92.26 | stock/options | 285.16 | 2,391.5M |
| SNOW | 139.71 | stock/options | 89.99 | 571.9M |
| CFLT | 20.84 | stocks/options | 73.81 | 51.3M |
| NQ | 11,476.50 | NASDAQ futures | 494,153 | 5,671.1M |
| ES | 3,990.00 | S&P futures | 1,334,109 | 5,323.1M |
OUR PICK – No New Pick
No new picks amid volatile markets. Markets don’t seem to favor our setup for now as we were stopped out on Gold and NZD/USD. We 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.