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 green this week, as 72% of our list closed higher with a median return of 1.53%.
- This week, US 10-Year Yield $TNX was the winner, closing with an 8.31% gain.
- The biggest loser was the Volatility Index $VIX, with a loss of -16.05%.
- There was a 2% drop in the percentage of assets on our list within 5% of their 52-week highs – currently at 28%.
- 13% of our macro list made fresh 4-week highs, 11% made new 13-week highs, and 9% made new 52-week highs.
- Meanwhile, 19% of our list made fresh 4-week lows, 17% made new 13-week lows, and 15% made new 52-week lows.
- The median asset in our macro universe is 6.7% below its 52-week highs (7.7% last week).
- 43% of our macro universe closed higher than their prior week's high.
- Meanwhile, only 21% of our list closed lower than their prior week's low.
- 26% of our list is in a bullish momentum regime (no change from last week).
- Treasury Inflation-Protected Securities $TIP and Emerging Markets Bonds $EMB both posted bearish reversal weeks.
International Universe:
- Our International Equities universe was positive this week as 88% of our list closed higher with a median return of 2.21%.
- This week, China $FXI was the leader with a 4.92% gain.
- Chile $ECH was the biggest loser this week, dropping -4.32%.
- 52% of our international universe closed higher than their prior week's high.
- There was an 8% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 17%.
- The median asset in our international universe is 10.8% below its 52-week high (12.7% last week).
- 19% of our list is in a bullish momentum regime (2% gain from last week).
- 16% of our international list made fresh 4-week highs, 6% made new 13-week highs, and 3% made new 52-week highs.
- Meanwhile, just 5% of our list made fresh 4-week lows.
- Chile $ECH and Peru $EPU both posted bearish reversal weeks.
US Sector Universe:
- Our sector universe had a positive week as 83% of our list closed higher with a median return of 1.28%.
- Small Cap Energy $PSCE was the winner this week, closing with a 5.60% gain.
- The biggest loser was Mid Cap Utilities, with a weekly loss of -1.67%.
- 17% of our sector list made fresh 4-week lows, 13% made new 13-week lows, and 4% made new 52-week lows.
- Meanwhile, only 4% of our list made fresh 4-week highs.
- There was an 8% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 21%.
- 30% of our sector universe closed higher than their prior week's high.
- 23% of our list is in a bullish momentum regime (no change from last week).
US Industry Universe:
- Our Industry universe was up this week, with 91% closing higher with a median return of 2.93%.
- This week's biggest winner again was Metals and Mining $XME, which gained 6.99%.
- This week's biggest loser was Home Construction $ITB, which dropped -1.73%.
- The percentage of our list in bullish momentum regimes had no change this week and has a current reading of 31%. This is by far the lowest reading since the COVID lows in 2020.
- 16% of the assets on our industry list are within 5% of their 52-week highs (7% gain from last week).
- The median asset in our industry universe is 15.5% below its 52-week highs (17.1% last week).
- 36% of our industry universe closed higher than last week's high.
- 9% of our industry list made fresh 4-week highs, 9% made new 13-week highs, and 7% made new 52-week highs.
- Meanwhile, 4% of our list made fresh 4-week lows.
That's it for this week's highlights!
