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:
- Another flat week for our macro universe as only 51% of our list closed higher with a median return of 0.03%.
- The Volatility Index $VIX was this week’s big winner with a 7.37% gain.
- Lumber continues to decline and was this week’s biggest loser dropping -7.16%.
- Dow Jones Industrials $DJI, Nasdaq Composite $COMPX, and the Russell 3000 $IWV all printed bullish reversals this week.
- Several US Large-Cap / Growth indices finished the week at all-time highs.
- There was also strength within fixed income as $TLT, $AGG, and $TIP all made 13-week highs.
- 74% of the assets on our macro list are within 5% of their 52-week highs.
- 30% made new 13-week highs over the week, and 21% made all-time highs.
- 66% of the assets on our macro list are in bullish momentum regimes, with 6% currently at extreme readings.
International ETF Universe:
- On the international equities front, we're seeing continued weakness as 67% of our list closed in negative territory with a median return of -0.48%.
- Momentum remains positive from a structural perspective as 80% of the assets on our list are in bullish regimes.
- Qatar $QAT was the strongest this week, with a 1.37% gain.
- Vietnam $VNM was this week’s biggest loser dropping -4.60%.
- Japan $EWJ, Taiwan $EWT, and the United Kingdom $EWU all posted a bullish reversal this week.
- Participation continues to weaken as we're seeing an expansion in new short-term lows.
- 38% of the assets on our international list made new 4-week lows on the week.
US Sectors Universe:
- US Sectors had another mixed week, with only 45% of our list closing in positive territory with a median return of -0.14%.
- The biggest winner of the week was large-cap Real Estate $XLRE which gained 2.66%.
- The loser of the week was equal weight Energy $RYE which dropped -3.94%.
- Momentum remains positive from a structural perspective as 85% of the assets on our list are in bullish regimes.
- Only 2% of our list made new 4-week lows this week, while 19% made new 4-week highs.
- Leadership continues to be with the large caps.
- Equal Weight Industrials $RGI, Large-Cap Industrials $XLI, and Mid-Cap Real Estate all posted a bullish reversal this week.
US Industry ETF Universe:
- Our US Industry universe showed a lack of internal strength as we drill down from the indexes as only 33% of our list closed higher with a median return of -0.72% this week.
- Lithium $LIT bucked the overall trend this week with a massive 8.51% gain.
- Oil Services $OIH was this week’s big loser dropping -5.50%.
- Internet $FDN and Steel $SLX both posted bullish reversals this week.
- Momentum is healthy from a structural perspective, as 84% of the assets on our list are in bullish regimes.
- 9% are currently at overbought readings.
- Only 47% of the assets on our list are within 5% of their 52-week highs. This figure has come down a lot in recent weeks/months.
- The bifurcation among equities is illustrated by the mixture of new highs and lows as 20% of our list made new 4-week highs, while 11% made new 4-week lows.
- 16% of our list finished the week at fresh all-time highs, and it was mostly tech and growth areas.
That’s it for this week’s highlights!
Thanks for reading and please let us know if you have any questions!
Allstarcharts Team
