STATE OF THE MARKETS

Thin markets amid US Thanksgiving day. Global equities from FTSE UK (+0.33%) to Nikkei (-2.18%) closed mixed on Thursday, while US markets closed for Thanksgiving Day. Asian markets in early Friday trading tumbled lower after news hit the wires that Turkish Lira collapse had spooked investors. News of new Covid variants out of South Africa is not helping either as precious metals and Dollar climb higher on safe-haven flows.

In the commodities market, crude fell for the second day to $76.30/bl at writing on new Covid variant concerns. Gold continued to climb back to $1,800/oz after Scotiabank was reported to be supporting the yellow metal at the figure. Elsewhere, iron ore continued to climb further to $94.30/tn as bids continue to float the demand.

In the FX space, risk off was evident as safe-haven flows in Yen, Swiss and Dollar dominated all horizons while the comdolls trio were offered. Euro, Sterling, Aussie and Kiwi were seen synching across medium and long term accounts suggesting overstretched offers of the currencies. On Friday, markets look for earnings reports from CPI Aerostructures (CVU) and Pinduoduo (PDD) as well as Fed’s balance sheets. US markets will close early on Friday for the holiday weekends.

OUR PICK – No New Pick

No new pick going into the weekend. With no big brother the US to bid on Thanksgiving, safe-haven flows seemed to dominate the markets as Asian trading in gloomy states from Sydney to Singapore and Hong Kong on Friday. UK gilts were on heavy bids on Thursday as investors ran for treasuries cover. US futures may open lower in pre-market Friday in reaction to the latest market development.

Trades updates: 

Equities: Currently we are holding 8 stocks – 7 longs and 1 short. We are long AUY (21% undervalued) with dividends yielding 2.92%, T (20% undervalued) at 8.50% yields and COG (CTRA) (5% undervalued) yielding 2.37%. CLVS is currently 21% overvalued with -7.19 z-score but Tudor Investment had stepped in recently and we decided to hold. We remain bullish with VIPS (44% undervalued with 5.59 z-score), GT (40% undervalued with 1.28 z-score) and CRON (15% undervalued with 9.18 z-score) while bearish GE (15% overvalued with 1.43 z-score).

FX & Commodities: NZD/CAD didn’t quite work as planned.

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.