From the desk of Steve Strazza @Sstrazza
Check out this week’s Momentum Report, our weekly summation of all the major indexes at a Macro, International, Sector, and Industry Group level.
By analyzing the short-term data in these reports, we get a more tactical view of the current state of markets. This information then helps us put near-term developments into the context of the big picture and provides insights regarding the structural trends at play.
Let’s jump right into it with some of the major takeaways from this week’s report:
* ASC Plus Members can access the Momentum Report by clicking the link at the bottom of this post.
Macro Universe:
- Our Macro Universe continued its weakness this week as over 60% of our list closed lower with a median return of -0.18%.
- Procyclical Commodities were the weakest this week.
- Copper was down 3.73% remains in a bullish regime.
- Lumber was the hardest hit again this week, dropping over 7.22%.
- The biggest winner of the week was the Volatility index again gaining over 7%
- New highs have disappeared across all timeframes apart from Gold, Silver, Oil and Frontier Markets
- 64% of the assets on our macro list are within 5% of their 52-week highs, only 2% made new 52-week highs over the week and only 13% made 21-day highs.
- 79% of the assets on our macro list are in bullish momentum regimes. Extreme range readings remain at 2% this week.
- The median RSI reading for the list is 52.
International ETF Universe:
- International Equities had a positive week as over 62% of our list closed the week in green territory with a median return of 0.42%.
- Although only 27% of the International ETF’s closed higher than last week’s high.
- United Arab Emirates $UAE was this week’s big winner with a 4.85% gain.
- Malaysia posted bearish reversals this week.
- No movement this week with 65% of the assets on our macro list are within 5% of their 52-week highs and only 33% made new 21-day highs over the week.
- Momentum regimes remain to be positive from a structural perspective, as 82% of the ETFs on our list are bullish.
- Chile $ECH was this week’s big loser dropping a massive 12.81%.
- We want to be fading strength in ECH as long as it's below 32.50 or the 38.2% Fibonacci retracement of the entire 2018 peak to the 2020 trough.
US Sectors Universe:
- The biggest winner of the week was Mid-Cap Tech which gained 1.87%.
- The loser of the week was Mid-Cap Staples which dropped 3.56%.
- Mid and Small-Cap Technology remain in a bearish regime this week.
- More new lows than highs across the shorter timeframes.
- Over 10% drop from last week with now only 68% of the assets on our macro list are within 5% of their 52-week highs. Currently only 9% of our list are at 52-week high.
- The outlook still remains strong from a structural perspective as 96% of our list are in a bullish momentum regime.
US Industry ETF Universe:
- The biggest winner of the week was Solar $TAN which gained 8.23%
- The biggest loser of the week was Copper Miners $COPX which dropped 4.79%
- It was a flat week for US industries as 51% of our universe closed higher with a median return of 0.06%.
- Only 24% of industry groups made fresh 21-Day highs this week.
- Only 22% closed the week out higher than last weeks high.
- The median percent away from 52-week high has climbed to 8% for our industry groups this week.
- Momentum regimes continue to look good from a structural perspective, as 82% of the industry ETFs on our list are bullish.
That’s it for this week’s highlights!
Thanks for reading and please let us know if you have any questions!
Allstarcharts Team
