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, our macro universe was in the red as 81% of our list closed lower with a median return of -2.28%.
- The Volatility Index $VIX was a massive winner, closing out the week with more than a 59% gain.
- The biggest loser again was Oil $CL, with a massive weekly loss of -10.45%.
- There was a 13% drop in the percentage of assets on our list within 5% of their 52-week highs – currently at 49%.
- 62% of our list made new 4-week lows (34% last week).
- Meanwhile, only 9% of our list made new 4-week highs.
- The median asset in our macro universe is 5.3% below its 52-week highs (from 3.1% last week).
- 74% of our macro universe closed lower than their prior week's low.
- Only 51% of our list is in a bullish momentum regime (11% drop from last week).
- Dow Jones Transports $DJT, Nasdaq Composite $COMPX, Nasdaq 100 $QQQ, S&P 500 $SPY, Russell 3000 $IWV, Russell 1000 $IWB, Russell 100 Growth $IWF, S&P Low Volatility $SPLV, S&P Global 100 $IOO, Commodity Index $CRB and US 10-Year Yield $TNX all posted bearish reversal weeks.
International Universe:
- Our International Equities universe was negative across the board as 94% of our list closed lower with a median return of -3.89%.
- 89% of our international universe closed below their prior week's lows.
- Chile $ECH was the leader this week with a 4.32% gain.
- South Africa $EZA was the biggest loser this week, dropping -8.34%.
- The percentage of assets within 5% of their 52-week highs dropped by 27% and is now at 15%.
- The median asset in our international universe is 9.8% below its 52-week high (6.4% last week).
- 29% of our list is in a bullish momentum regime (31% drop from last week).
- 89% of our sector list made fresh 4-week lows, 63% made new 13-week lows, and 18% made new 52-week lows.
- Indonesia $EIDO, Hong Kong $EWH and South Korea $EWY all posted bearish reversal weeks.
US Sector Universe:
- Our sector universe had another negative week as 91% of our list closed lower with a median return of -2.37%.
- Equal Weight Energy $RYE was the big winner, closing with a 1.85% gain.
- The biggest loser of the week was Mid Cap Technology which dropped by a massive -5.18%.
- 49% of our sector list made fresh 4-week lows, and 11% made new 13-week lows.
- The percentage of assets on our list within 5% of their 52-week highs went up from 77% to 79%.
- 77% of our sector universe closed lower than their prior week's low.
- The outlook remains stable from a structural perspective as 79% of our list is in a bullish momentum regime (a 4% drop from last week).
- Equal Weight Technology $RYT, Large Cap Technology $XLK, Mid Cap Industrials, Mid Cap Financials, Small Cap Utilities and Communication Services $PSCU and Small Cap Technology $PSCT all posted bearish reversal weeks.
US Industry Universe:
- Our Industry universe was down this week, with 87% closing lower with a median return of -2.74%.
- This week's biggest winner was Rare Earth and Strategic Metals $REMX +2.44%.
- The biggest loser this week was Solar $TAN which dropped -7.59%.
- 64% of industry groups made fresh 4-week lows, 24% made new 13-week lows, and 9% made fresh 52-week lows.
- Meanwhile, we saw only 2% of industry groups made fresh 4-week highs.
- The percentage of our list in bullish momentum regimes had a 4% drop this week and has a current reading of 69%.
- 24% of the assets on our industry list are within 5% of their 52-week highs (23% drop from last week).
- The median asset in our industry universe is 8.7% below its 52-week highs (5.2% last week).
- 78% of our industry universe closed lower than last week's low.
- Global Auto $CARZ, Banks $KBE, Regional Banks $KRE, Community Banks $QABA, Water $PHO and Solar $TAN all posted bearish reversal weeks.
That's it for this week's highlights!
