State of The Markets

Author: MFMTeam   |   Latest post: Fri, 17 Sep 2021, 9:20 AM


Equities Lower As Fear Escalated

Author:   |    Publish date:


Equities lower as fear escalated. Global equities closed generally lower on Thursday, with only S&P (+0.13%) and Nasdaq (+0.1%) up, while Dow (-0.19%), FTSE (-1.54%), Stoxx (-1.54%) and Nikkei (-1.10%) in the red, after news broke that crisis in Afghanistan has escalated. Feds minutes pointed to tapering later this year and global surge in delta variant cases are making sentiments worse forcing demand for crude oil to collapse. Risk off sentiments was evident as yields for 30Y (-0.04), 10Y (-0.03), 5Y (-0.01) and short term notes fell as demand surged.

Demand for crude collapsed amid more than $1 billion worth of block orders hit the futures market, sending the black gold as low as $62.40/bl before bidders emerged to settle the commodity around $63.65/bl as New York closed. Gold faced profit taking and limited upside on Dollar strength as yields seeking investors ran for cover. The precious metal settled around $1781.20/oz and flirted around $1785.50/oz at writing.

In the FX space, demand for Dollar, Yen and Swiss continue to reign in the short term accounts, as the comdolls being offered across all horizons; while risk off sentiments continue to see more bids for Euro than Sterling in the short and medium term accounts.

OUR PICK – No New Pick

Humbled by markets. This is the second time we had another three losses in a row. We are humbled by markets and this is not the first time and we know it won’t be the last either. When this happens, we tend to think that something is wrong somewhere. Fact of the matter is, markets are changing and moving towards new dynamics. Uncertainties about Fed’s tapering, delta spread, Afghan crisis are not something we are able to foresee. We just have to accept the losses, manage our risk and move on. In the meantime, we will take a break for a week on picking of the markets.

Trades updates:  We are accumulating AUY as the stock now pays dividends yielding 2.86% at current price, we remain bullish T and will accumulate as dividends yields now at 7.56%, we remain bullish COG and will accumulate as dividends yields now at 3.02%, we remain bullish CLVSVIPS and GT while bearish GE.  Crude and two trades of NZD/USD were stopped out. (Note: APA pays 0.63% while GE’s dividend yield is at 0.32% and CLVS, VIPS and GT currently does not pay any dividends)


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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