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:
- Our macro universe was a split decision this week as 51% of our list closed higher with a median return of 0.01%.
- The Volatility Index $VIX was the big winner, closing out the week with more than a 5% gain.
- Once again, the biggest loser was Lumber $LB, with a weekly loss of -11.38%
- There was a 2% drop in the percentage of assets on our list within 5% of their 52-week highs – currently at 64%.
- 36% of our list made new 4-week highs, and 32% made new 13-week highs.
- The median asset in our macro universe is 2% below its 52-week highs.
- Only 34% of our macro universe closed higher than their prior week’s highs.
- The percentage of assets in bullish momentum regimes is still near year-to-date lows with a current reading of 53% (no change from last week).
- Euro/USD posted a Bearish reversal week.
- Leadership remains with US equities.
International Universe:
- International Equities were negative this week as 68% of our list closed lower with a median return of -0.60%.
- Only 22% of our international universe closed above their prior week’s highs.
- Vietnam $VNM was the leader this week with a 3.36% gain.
- Large Cap China $FXI was the biggest loser this week, dropping -4.43%.
- The percentage of assets within 5% of their 52-week highs dropped by 4% and is now at 51%.
- The median asset in our international universe is 4.7% below its 52-week high.
- Momentum regimes are still skating on thin ice from a structural perspective, with only 58% of the ETFs on our list in bullish territory.
- 26% of our sector list made fresh 4-week highs, 11% made new 13-week highs, and 8% made new 52-week highs.
- New all-time highs from US $SPY and Israel $EIS.
- Argentina $ARGT, Finland $EFNL, Qatar $QAT, and Russia $RSX posted bearish reversal weeks.
US Sector Universe:
- Our sector universe had a quiet week as only 34% of our list closed higher with a median return of -0.13%.
- Large Cap Consumer Discretionary $XLY was the big winner, closing with a 4.36% gain.
- The biggest loser of the week was Mid-Cap Energy which dropped by -3.92%.
- 30% of our sector list made fresh 4-week highs, 15% made new 13-week highs, and 13% made new 52-week highs.
- Only 2% of our sector list made fresh 4-week lows.
- The percentage of assets on our list within 5% of their 52-week highs dropped from 77% to 70%.
- Only 23% of our sector universe closed higher than their prior week’s high.
- The outlook remains stable from a structural perspective as 68% of our list is in a bullish momentum regime. (No change from last week)
- Small-Cap Information Technology $PSCT posted a bullish reversal week.
- Equal Weight Energy $RYE and Mid-Cap Energy both posted bearish reversal weeks.
US Industry Universe:
- Our Industry universe experienced minor damage as 62% of ETFs closed lower with a median return of -0.63%.
- This week’s biggest winner was Solar $TAN +12.05%.
- The biggest loser this week was Mobile Payments $IPAY which dropped -5.98%.
- 33% of industry groups made fresh 4-week highs, 20% made new 13-week highs, and 16% made fresh 52-week highs.
- Only 13% of industry groups made fresh 4-week lows.
- The percentage of our list in bullish momentum regimes was unchanged this week and is currently at 71%.
- 53% of the assets on our industry list are within 5% of their 52-week highs (8% drop from last week).
- The median asset in our industry universe is 4.4% below its 52-week highs.
- Only 24% of our industry universe closed higher than last week’s high.
- Gaming $BJK posted a bullish reversal week.
That's it for this week's highlights!
