[PLUS] Weekly Momentum Report & Takeaways

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 performance was mixed this week as only 62% of our list closed higher with a median return of 0.22%.
• The biggest winner of the week was the Volatility Index $VIX which gained 6.05%.
• 10-Year Yield $TNX shows continued weakness as this week’s biggest loser, dropping -3.65%.
• Momentum remains constructive from a structural perspective, as 60% of the assets on our macro list are in a bullish momentum regime.
• 68% of the assets on our macro list are within 5% of their 52-week highs.
• Falling from last week, we only saw 26% of the assets on this list post a new 4-week high with 4% making fresh all-time highs on the week.

International Universe:

• Our international universe had a slightly positive week, with 58% of our list closing in the green with a median return of 0.22%.
• Turkey $TUR was the big winner as it booked a 4.38% gain this week.
• With some geopolitical-driven action this week, China Large-cap $FXI was the biggest laggard with a loss of -5.24%.
• South Africa $EZA posted a bullish reversal this week. On the flip side, we saw a bearish reversal in Peru $EPU.
• 64% of the assets on our international list are in bullish momentum regimes.
• We saw no change this week, with 44% of the ETF’s on our international list still within 5% of their 52-week highs.
• Breadth readings remain a mixed bag as 33% of our list made new 4-week lows, and 24% made new 4-week highs.

US Sector Universe:

• Our US sector universe saw continued strength from the bulls this week as 85% of our list closed higher with a median return of 0.72%.
• Small-cap Materials $PSCM were this week’s big winner, gaining 4.73%.
• On the other hand, the biggest laggard was the Large-cap Consumer Discretionary $XLY, with a loss of -1.55%
• The percentage of our sector list in bullish momentum regimes rose by 7% this week and is now at a reading of 74%, with 4% currently at extreme overbought readings.
• 62% of the assets on our list are within 5% of their 52-week highs.
• 30% of the assets on this list posted a new 4-week high with 13% making fresh all-time highs on the week.
• We had another week with leadership concentrated on the large-caps.

US Industry Universe:

• Our US industry list saw continued strength this week as 62% closed in positive territory with a median return of 0.70%.
• The biggest winner of the week was Metals & Mining ETF $XME which gained 7.02%.
• Meanwhile, the worst-performer of the week was the Social Media ETF $SOCL which fell by -5.19%.
• Momentum remains positive from a structural perspective as 62% of the assets on our list are in bullish regimes.
• Internal readings are repairing on our industry list as 38% are within 5% of their 52-week highs with a median drawdown of 7.2%.

• 27% of our list made new 4-week highs, while only 9% made new 4-week lows.