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 red as 70% of our list closed lower with a median return of -0.55%.
- The 30-Year Yield $TYX was the winner again this week, closing with a 9.30% gain.
- The biggest loser was the Volatility Index $VIX, with a weekly loss of -9.61%.
- There was a 2% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 13%.
- Only 9% of our macro list made fresh 4-week highs.
- Meanwhile, 66% of our list made fresh 4-week lows, 60% made new 13-week lows, and 51% made new 52-week lows.
- The median asset in our macro universe is 13.5% below its 52-week highs (13.3% last week).
- 9% of our macro universe closed higher than their prior week's high.
- Meanwhile, 55% of our list closed lower than their prior week's low.
- 72% of our list is in a bearish momentum regime (a 4% decline from last week).
- Dow Jones Industrials $DJI, Nasdaq 100 $QQQ, Russell 3000 $IWV, Mid Caps $MDY, Russell 2000 $IWM, Micro Caps $IWC, FTSE All-World Ex-US $VEU, EAFA $EFA and Emerging Currencies $CEW all posted bearish reversal weeks.
International Universe:
- Our International Equities universe was negative again this week as 94% of our list closed lower with a median return of -2.20%.
- Chile $ECH was the leader with a 2.09% gain this week.
- This week, Peru $EPU was the biggest loser, dropping by -6.57%.
- 73% of our international universe closed lower than their prior week's low.
- There was no change in the percentage of assets on our list within 5% of their 52-week highs – currently at 5%.
- The median asset in our international universe is 19.7% below its 52-week high (17.5% last week).
- 86% of our list is in a bearish momentum regime (a 5% increase from last week).
- 0% of our international list made fresh 4-week highs.
- Meanwhile, 84% of our list made fresh 4-week lows, 62% made new 13-week lows, and 49% made new 52-week lows.
- All-Country World Index $ACWI, EAFA $EFA, Indonesia $EIDO, Norway $ENOR, Australia $EWA, Germany $EWG, Hong Kong $EWH, Italy $EWI, Malaysia $EWM, Netherlands $EWN, Austria $EWO, Spain $EWP, France $EWQ, Taiwan $EWT, United Kingdom $EWU, Qatar $QAT, Thailand $THD, Developed Markets $VEA, FTSE All-World ex-US $VEU, Europe $VGK & Vietnam $VNM all posted bearish reversal weeks.
US Sector Universe:
- Our sector universe was negative this week as 66% of our list closed lower with a median return of -0.39%.
- The biggest winner was Equal Weight Energy $RYE, with a weekly gain of 10.34%.
- Mid Cap Telco was the biggest loser this week, dropping by -4.76%.
- 66% of our list made fresh 4-week lows, 49% made new 13-week lows, and 38% made new 52-week lows.
- There was a 5% gain in the percentage of assets on our list within 5% of their 52-week highs – currently at 9%.
- 49% of our sector universe closed lower than their prior week's low.
- 68% of our list is in a bearish momentum regime (no change from last week).
- The median asset in our macro universe is 13.8% below its 52-week highs (12.9% last week).
- Equal Weight Technology $RYT, Equal Weight Consumer Discretionary $RCD, Equal Weight Industrials $RGI, Mid Cyclical & Mid Technology all posted bearish reversal weeks.
US Industry Universe:
- Our Industry universe was negative this week, with 60% closing lower with a median return of -1.58%.
- This week's biggest winner again was Natural Gas $FCG which gained 7.98%.
- This week's biggest loser was Cyber Security $HACK, dropping by -7.64%.
- The percentage of our list in bullish momentum regimes had no change this week and has a current reading of 31%.
- 9% of the assets on our industry list are within 5% of their 52-week highs (a 5% gain from last week).
- The median asset in our industry universe is 23.3% below its 52-week highs (22.1% last week).
- 56% of our industry universe closed lower than last week's low.
- 58% of our list made fresh 4-week lows, 44% made new 13-week lows, and 40% made new 52-week lows.
- MLPs $AMLP & Mortgage Real Estate $REM both posted bullish reversal weeks.
- Gaming $BJK, Gold Miners $GDX, Media $PBS, Water Utilities $PHO, Retail $XRT & Agribusiness $MOO posted bearish reversal weeks.
That's it for this week's highlights!
