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 in the red again this week, as 68% of our list closed lower, with a median return of -0.42%.
- Lumber $LB was a massive winner, closing out the week with a gain of more than 18%.
- The biggest loser was US 10-Year Yield $TNX, with a weekly loss of -9.38%.
- There was an 11% drop in the percentage of assets on our list within 5% of their 52-week highs (currently at 38%).
- 64% of our list made new four-week lows (versus 62% last week).
- Meanwhile, only 13% of our list made new four-week highs.
- The median asset in our macro universe is 6.2% below its 52-week high (5.3% last week).
- 51% of our macro universe closed lower than their prior week's low.
- Only 38% of our list is in a bullish momentum regime (13% drop from last week).
International Universe
- Our international equities universe was negative this week, as 52% of our list closed lower, with a median return of -0.13%.
- 38% of our international universe closed below their prior week's lows.
- Colombia $GXG was the leader this week with an 8.30% gain.
- Chile $ECH was the biggest loser this week, dropping -6.63%.
- The percentage of assets within 5% of their 52-week highs dropped by 1% and is now at 14%.
- The median asset in our international universe is now 10.3% below its 52-week high (9.8% last week).
- Only 23% of our list is in a bullish momentum regime (6% drop from last week).
- 52% of our list made fresh four-week lows, 35% made new 13-week lows, and 11% made new 52-week lows.
- Portugal $PGAL posted a bearish reversal week.
US Sector Universe
- Our sector universe had another negative week, as 91% of our list closed lower, with a median return of -1.53%.
- Large Cap Utilities $XLU was the big winner, closing with a 0.96% gain.
- The week's biggest loser was Small Cap Health Care $PSCH, which dropped by -5.30%.
- 87% of our sector list made fresh four-week lows, and 19% made new 13-week lows.
- The percentage of assets on our list within 5% of their 52-week highs dropped from 79% to 28%.
- 77% of our sector universe closed lower than their prior week's low.
- 53% of our list is in a bullish momentum regime (26% drop from last week).
US Industry Universe
- Our industry universe was down again this week, with 91% of ETFs closing lower, with a median return of -3.08%.
- This week's biggest winner was US Home Construction $ITB, which rose +2.50%.
- The biggest loser again this week was Solar $TAN, which dropped -9.39%.
- 91% of industry groups made fresh four-week lows, 49% made new 13-week lows, and 16% made fresh 52-week lows.
- Meanwhile, only 2% of industry groups made fresh four-week highs.
- The percentage of our list in bullish momentum regimes dropped 18% this week and has a current reading of 51%.
- Only 9% of the assets on our industry list are still within 5% of their 52-week highs (15% drop from last week).
- The median asset in our industry universe is 13.1% below its 52-week high (8.7% last week).
- 80% of our industry universe closed lower than last week's low.
- Biotechnology $IBB and Rare Earth and Strategic Metals $REMX posted bearish reversal weeks.
That's it for this week's highlights!
