COPX Dropped 7.08% in Materials-Led Washout

Friday’s washout was materials-led: Copper Miners COPX dropped 7.08%, Gold Miners GDX slid 7.03%, and South Korea EWY fell 6.12%. Long Treasuries TLT declined 1.48%, reinforcing the downside tone, while Energy XLE rose 2.36% as the exception. Against that backdrop, COPX stays vol-compressed, GDX remains vol-compressed, and Technology XLK is overbought even as EWY still leads the 3M equity leaderboard at +33.5%.

Equity: Energy resilience, Korea and copper miners slide

Today's Movers

Outperformers: Energy XLE +2.36% (3M: +10.1%), Covered Calls S&P JEPI -0.18% (3M: -3.8%)

Underperformers: Copper Miners COPX -7.08% (3M: -5.6%), South Korea EWY -6.12% (3M: +33.5%)

3M Leaderboard

Strong: South Korea EWY +33.5%, Technology XLK +26.5%, US Technology IYW +25.4%

Weak: India INDA -9.3%, Healthcare XLV -7.6%, China MCHI -6.2%

Fixed Income: Short-end holds up, long duration sells off

Today's Movers

Outperformers: Short TIPS VTIP -0.06% (3M: +1.3%), Short Corporate VCSH -0.23% (3M: -0.6%)

Underperformers: Long Treasuries TLT -1.48% (3M: -5.7%), Preferred Stock PFF -1.17% (3M: -0.4%)

3M Leaderboard

Strong: Short TIPS VTIP +1.3%, High Yield Bonds JNK -0.2%, TIPS TIP -0.2%

Weak: Long Treasuries TLT -5.7%, 7-10yr Treasuries IEF -2.9%, Investment Grade Credit LQD -2.2%

Specialty: Semiconductors cracks despite 3M strength

Today's Movers

Outperformers: Long/Short Equity FTLS +0.08% (3M: +5.0%), Managed Futures DBMF -0.03% (3M: +3.2%)

Underperformers: Gold Miners GDX -7.03% (3M: -16.0%), Semiconductors SMH -3.80% (3M: +36.5%)

3M Leaderboard

Strong: Semiconductors SMH +36.4%, Momentum Factor MTUM +18.7%, Clean Energy ICLN +18.3%

Weak: Gold Miners GDX -16.0%, Gold GLD -9.8%, Biotechnology IBB -3.2%

Notable Setups

Equity — Trend-break risk: South Korea EWY (top decliner today -6.12%, 3M leader +33.5%)

Equity — Exhaustion risk: Technology XLK and US Technology IYW (3M leaders, flashing overbought)

Equity — Volatility Compression: Global Min Vol ACWV, Copper Miners COPX, Dow Jones DIA

Equity — Overbought: US Technology IYW, Nasdaq 100 QQQ, Technology XLK

Fixed Income — Reversal setup: Long Treasuries TLT (vol compression building in 3M underperformers)

Fixed Income — Volatility Compression: Preferred Stock PFF, TIPS TIP, Long Treasuries TLT

Specialty — Trend-break risk: Semiconductors SMH (top decliner today -3.80%, 3M leader +36.5%)

Specialty — Reversal setup: Gold Miners GDX (vol compression building in 3M underperformers)

Specialty — Volatility Compression: Managed Futures DBMF, Ethereum Trust ETHA, Gold Miners GDX

Specialty — Overbought: Covered Calls Nasdaq JEPQ

Cross-Asset Read

A materials-led washout defined the session, with cyclical resource exposure and duration sold together while XLE stood apart. The stress point is that XLK, IYW, and QQQ remain overbought even as EWY still sits atop the 3M equity leaderboard and GDX remains in a strong 3M downtrend. The unresolved signal is the compression cluster in COPX, GDX, and TLT; its resolution determines whether the materials-led washout extends or exhausts.

Romain Gandon
CEO, Quantlake

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. Past performance is not indicative of future results.