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 green as 83% of our list closed higher with a median return of 1.58%.
- The US 10-Year Yield $TNX was the winner this week, closing with a 6.49% gain.
- The biggest loser was the Volatility index $VIX which posted a loss of -16.74%.
- There was an 8% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 53%.
- 45% of our sector list made fresh 4-week highs, 9% made new 13-week highs, and 6% made new 52-week highs.
- Meanwhile, only 11% of our list made new 4-week lows.
- The median asset in our macro universe is 4.4% below its 52-week highs (6.4% last week).
- 38% of our macro universe closed higher than their prior week's high.
- 40% of our list is in a bullish momentum regime (no change from last week).
- This week there were bullish reversals from the Nasdaq Composite $COMPX, Russell 3000 $IWV, Russell 1000 $IWB, Russell 2000 $IWM, Micro Caps $IWC, High Beta $SPHB, S&P 500 Value $VLUE, Global Dow $DGT, Developed Ex-US $EFA, Commodities Index $CRB, Oil $CL, Emerging Currencies $CEW, High Yield $HYG and Emerging Bonds (Local) $ELD.
- 20+ Year Treasuries $TLT and the Volatility index $VIX both posted a bearish reversal week.
International Universe:
- Our International Equities universe was positive this week as 84% of our list closed higher with a median return of 1.86%.
- 84% of our international universe closed higher than their prior week's high.
- Turkey $TUR was the leader this week with a massive 22.15% gain.
- Chile $ECH was the biggest loser this week, dropping -6.49%.
- There was an 11% increase in the percentage of assets on our list within 5% of their 52-week highs – currently at 27%.
- The median asset in our international universe is 9% below its 52-week high (11.7% last week).
- 22% of our list is in a bullish momentum regime (no change from last week).
- 28% of our sector list made fresh 4-week highs.
- Only 9% of our list made new 4-week lows.
- All Country World Index $ACWI, Developed Ex-US $EFA, Israel $EIS, Emerging Markets ex China $EMXC, Australia $EWA, Canada $EWC, Sweden $EWD, Germany $EWG, Italy $EWI, Netherlands $EWN, Austria $EWO, France $EWQ, Portugal $PGAL, Turkey $TUR and Europe $VGK all posted a bullish reversal week.
US Sector Universe:
- Our sector universe had a positive week as 91% of our list closed lower with a median return of 1.95%.
- Small Cap Health Care $PSCH was the big winner, closing with a 4.62% gain.
- The week's biggest loser was Equal Weight Consumer Staples $RHS which dropped by -0.43%.
- 49% of our sector list made fresh 4-week highs, 15% made new 13-week highs, and 11% made new 52-week highs.
- The percentage of assets on our list within 5% of their 52-week highs increased from 47% to 68%.
- 36% of our sector universe closed higher than their prior week's high.
- 60% of our list is in a bullish momentum regime (no change from last week).
- Equal Weight Technology $RYT, Telecom $XTL, Large Cap Consumer Discretionary $XLY, Mid Cap Technology, Mid Cap REITs, Small Cap Utilities Communication Services $PSCU, Small Cap Technology $PSCT, Small Cap Materials $PSCM, Small Cap Financials $PSCF and Small Cap Real Estate $ROOF all posted a bullish reversal week.
US Industry Universe:
- 87% of our Industry universe was higher this week with a median return of 2.26%.
- This week's biggest winner was the Global Jets ETF $JETS which gained 6.74%.
- This week's biggest loser was Steel $SLX which dropped -6.96%.
- 38% of our sector list made fresh 4-week highs, 9% made new 13-week highs, and 9% made new 52-week highs.
- Meanwhile, only 11% of industry groups made fresh 4-week lows.
- 24% of the assets on our industry list are within 5% of their 52-week highs (11% gain from last week).
- The median asset in our industry universe is 11.6% below its 52-week highs.
- 38% of our industry universe closed higher than last week's high.
- Gaming $BJK, Copper Miners $COPX, Healthcare Providers $IHF, Medical Devices $IHI, Aerospace & Defense $ITA, Transportation $IYT, Global Jets $JETS, Media $PBS, Leisure & Entertainment $PEJ and Real Estate $REM all posted a bullish reversal week.
That's it for this week's highlights!
