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 big picture context 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:
- This week, we saw continued strength from our macro universe as 83% of our list closed higher with a median return of 1.56%.
- Copper $HG was the big winner, as it gained over 10% and registered a fresh 13-week high in the process.
- The biggest loser again this week was the Volatility Index $VIX, with a loss of -13.16%
- There was a 19% rise in the percentage of assets on our list within 5% of their 52-week highs (currently at 66%).
- Half of our list made new 4-week highs.
- Meanwhile, only 11% of our list made new 4-week lows.
- The average asset in our macro universe is now just 3.1% from new 52-week highs (from 5% last week).
- 64% of our macro universe closed higher than their prior week's highs.
- The number of assets on our macro list in bullish momentum regimes is still at a year-to-date low with a reading of 51% (no change from last week).
- We saw a bullish reversal move from Emerging Bonds $EMB this week.
International Universe:
- International Equities were hot this past week, with 91% of our list higher and a median return of 2.40%.
- 86% of our international universe closed higher than their prior week's highs.
- Peru $EPU was the leader this week with an 8.33% gain.
- Chile $ECH was once again the week's biggest loser, dropping by -3.54%.
- The percent of assets within 5% of 52-week highs saw a sharp rise of 26% this week and is now at 52%.
- Meanwhile, the average asset in our international universe is 4.9% below their 52-week highs. (Down from 7% last week)
- Momentum regimes are skating on thin ice from a structural perspective as only 58% of the ETFs on our list are bullish.
- 60% of the assets on this list posted new 4-week highs, while only 5% made 4-week lows.
- 86% of our international universe closed higher than their last week's highs.
- We saw new all-time highs from Canada $EWC, India $INDY, and Saudi Arabia $KSA.
- We saw bullish reversals from Denmark $EDEN, Ireland $EIRL, Nigeria $NGE, and Pakistan $PAK.
US Sector Universe:
- Our sector universe performance saw strength this week, as 94% of our list closed higher with a median return of 1.70%.
- Mid Cap Materials was the big winner this week, posting a 3.8% gain.
- The biggest loser of the week was Small-Cap Consumer Staples $PSCC which dropped by -1.10%.
- 62% of our sector list achieved fresh 4-week highs, and 23% made new 13-week highs.
- We saw a 15% rise in the percentage of assets on our list within 5% of their 52-week highs (from 49% up to 64%).
- 64% of our sector universe closed higher than last week's high.
- The outlook remains stable from a structural perspective as 66% (no change from last week) of our list is in a bullish momentum regime.
- Equal Weight, Large-Cap, and Mid-Cap Financials all made new record highs.
US Industry Universe:
- Our Industry universe was also green across the board this week, with 87% closing higher with a median return of 2.31%.
- The biggest winner was Uranium $URA, which gained a massive 16.56%.
- The biggest loser of the week was Airlines $JETS, which dropped -1.67%.
- 57% of industry groups made fresh 4-week highs, and 30% made new 13-week highs.
- The percentage of our list in bullish momentum regimes moved up to 72%, a 9% gain from last week.
- 54% of the assets on our industry list are within 5% of their 52-week highs (21% gain from last week).
- 65% of our industry universe closed higher than last week's high.
- We saw bullish reversals from Wind Energy $FAN, Mobile Payments $IPAY, and Semiconductors $SOXX.
That's it for this week's highlights!
