Tiger Brokers is a global brokerage platform that gives Australian investors simple access to ASX and US stocks. Listed on the Nasdaq, the trading group’s Australian division is offering zero brokerage on both US stocks and ASX shares for the first 3 months.*

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As the Russia-Ukraine conflict continues to send major shockwaves across global markets, investors have responded to the volatility.

In short, the pivot out of tech stocks that began when the interest rate outlook changed last November has continued to accelerate, with the Nasdaq moving into a bear market (falls of 20% or more).

And that’s been accompanied by a major shift into commodities, as the involvement of Russia — a major energy and resources supplier — sent commodity prices skyrocketing across the board.

From oil to gold and just about everything else (copper, paladium, nickel and iron ore), the dislocation in prices continues to reverberate globally.

In that context, this week’s data from Tiger Brokers provides some interesting insights into where global investors have been positioning.

For US options and stock investments, the familiar big US tech names have still seen plenty of activity.

Whereas the trends in ETF products clearly show an investor respond to the conflict, with more positioning based on price falls (SQQQ) and increased market volatility (UVXY).

Below is a summary of the most common trades which Tiger Brokers — a global trading platform — gives its investors access too as markets go through some historic changes.

Top 10 most-traded US options on Tiger Brokers globally:

TSLA — Tesla
NIO — Nio Inc
PLTR — Peloton
AAPL — Apple
SPY — S&P 500 ETF
BABA — Alibaba
AMD — Advanced Micro Devices
NVDA — Nvidia
SE — Sea Ltd
QQQ — Nasdaq 100 ETF

Top 10 most traded US stocks on Tiger Brokers globally:

TSLA — Tesla
SE — Sea Ltd
NIO — Nio Inc
GRAB — Grab Holdings
BABA — Alibaba
AAPL — Apple
PLTR — Peloton
TIGR — UP Fintech Holding
FB — Meta (Facebook)
BILI — Bilibili Inc

Top 5 most traded US ETFs on Tiger Brokers

SPY — State Street S&P500 ETF
TQQQ — Proshares Nasdaq 100 ETF
SQQQ — Proshares UltraPro Short Nasdaq ETF
RSX — VanEck Russia ETF
UVXY — ProShares Ultra VIX Short Term Futures ETF

What were the biggest 3 gainers and losers in US stocks?

Gainers:

INDO — Indonesia Energy Corp
ATXI — Avenue Therapeutics
BCEL — Atreca Inc

Losers

DRIP — Direxion Daily S&P Oil & Gas (inverse of S&P Oil & Gas sector)
SOXS — Direxion Daily Semiconductor (inverse of S&P semiconductor stocks)
RUSL — Direxion Daily Russia Bull 2X Shares

In line with these trades, Tiger Brokers chief strategy officer Michael McCarthy offered insights into how traders are responding to the ongoing conflict in Ukraine.

Risk rallies as tensions cool

“Shares rallied and commodity prices eased overnight following promising developments in the Ukrainian conflict,” McCarthy told Stockhead.

And when oil prices fell after the United Arab Emirates declared support for production increases to meet shortages induced by sanctions on Russia, a splash of positivity emerged.

“These developments saw traders breathe a sigh of relief, and investors returned to enthusiastically buy the dip.

“German shares led Europe higher after the Ukrainian president said his country could accept “neutrality”, one of Russia’s demands for peace,” McCarthy added.

The remarks gained additional significance on the arrival of the Russian foreign minister in Turkey for talks with his Ukrainian counterpart.

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Inflation situation

“A quick resolution of the current conflict would soothe market concerns about disruption and inflation, illustrated by a more than 7% lift in the German DAX during a single session,” McCarthy said.

“The UAE’s US ambassador said the Emirate will call on fellow OPEC members to increase production to ensure stability in energy markets.”

This prompted an immediate drop in crude oil prices. Both Brent and West Texas contracts fell by as much as 17%, before closing off their lows.

“Lower energy prices are a double win for the global economy,” McCarthy said.

“Higher prices potentially destroy demand and choke off growth, while simultaneously driving inflation higher.”

“The easing of concerns and a more promising outlook in eastern Europe sparked the surge in positive market sentiment.

“However, McCarthy added that the current elevated volatility could make this more of a respite, rather than resolution.

Recent US option activity indicates a more even spread of market views.

“Large tech stocks and related indices remain in focus, but demand for options both above and below current share price levels suggests some are preparing for a rally, while others are still protecting downside risks.”

*Pass through fees apply
Options trading carries significant risk and may not be suitable to all investors.
Read PDS, TMD &FSG on Tiger Brokers(AU)’s website before trading. AFSL 300767.
This article was developed in collaboration with Tiger Brokers, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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