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 turned things around this week as 81% of our list closed higher this week with a median return of 0.94%
- Procyclical Commodities led the bounce as Copper and Crude Oil were the week’s biggest winners up 4.39% and 4.31%, respectively
- New highs have increased over last week’s dismal performance
- And 74% of the assets on our list are within 5% of their 52-week highs, an expansion of 10% from last week
- Percentage of assets within a bullish momentum regime remains unchanged at 79% with only 2% at extreme readings
- The Median RSI reading rose slightly from 52 to 57 this week
International ETF Universe:
- International equities continued to show strength with 91% of our list closing higher with a median return of 1.67% this week
- Also, 75% of the International ETFs closed higher than last week’s high
- The Philippines $EPHE was this week’s big winner, up 8.26%. Just take a look at this weekly marubozu candle - it doesn't get much more bullish than this!
- Meanwhile, Turkey $TUR was the worst performer, down 2.88%
- Percentage of assets within 5% of their 52-week highs rose to 75% last week with 62% making new 21-day highs
- Momentum regimes remain positive as 85% of our universe are in bullish regimes with a median RSI reading of 62
US Sectors Universe:
- Small-cap Consumer Discretionary $PSCD was the big winner this week, up 4.96%
- While Mid-cap Energy was the worst performer, down 2.86%
- We have more new highs than lows across all timeframes
- Percentage of sectors within 5% of their 52-week highs bounced back from last week’s drop to a healthy 87%
- Momentum remains positive with 96% of our list in a bullish regime, yet 0% are registered an overbought RSI reading above 70 with a median reading of 57
US Industry ETF Universe:
- This week’s bigger winner was the Leisure and Entertainment ETF $PEJ which gained 7.59%
- On the flip side, the biggest loser was the Community Bank Index Fund $QABA which slid .66%
- US Industries came to life as 96% of our list closed higher with a mean return of 2.03% last week
- 41% of our list closed higher than its previous week’s high
- But Only 27% of industry groups made new 21-day highs
- The percentage of Industry groups in a bullish momentum regime is robust at 91% with a median RSI reading of 59
That’s it for this week’s highlights!
