From the desk of Steve Strazza @Sstrazza and Ian Culley @IanCulley
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 context of the big picture 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.
- Procyclical Commodities led this week, with Copper up over 4% and Lumber posting a solid 6% gain.
- With that said, the biggest loser of the week was Crude Oil (-1.57%), which is also cyclical in nature… This is a good example of how things are just messy right now.
- We had a single asset make a new low this week… The US Dollar Index $DXY was the only asset on our list to make a new low this week (1-month low).
- New highs continue to be abundant across all timeframes, particularly from risk assets like Stocks and Commodities.
- Over 70% of the assets on our macro list are in bullish momentum regimes (71%).
- China A-shares $ASHR were this week’s big winner with a 4.38% gain.
- We had several bullish reversals from European countries such as the Netherlands, Spain, Portugal, and Austria.
- There was also notable strength from Northern European countries, such as Finland and Denmark, both of which confirmed their fresh record closing highs from the prior week with impressive follow-through (see chart below).
- Long-term laggard, Egypt $EGPT… and long-term leader, Taiwan $EWT also posted solid gains this week.
- Turkey ($TUR -6.69%) and Peru ($EPU -11.14%) got hit hardest as both sold off considerably.
- Overall, global equities were mixed on the week as just over half of our universe closed higher with a muted median return of +0.08%.
- Things still look good from a structural perspective as 87% of the ETFs on our list are in bullish momentum regimes.