Daily Movers: Brazil EWZ Rose 2.77%

Friday fit a counter-trend rebound. Brazil EWZ rose 2.77% against a 3M downtrend. Health Care XLV fell 0.82%, South Korea EWY lost 0.67%, Investment Grade Credit LQD dropped 0.23%, and Biotech IBB declined 2.68%. Ethereum ETHA rose 2.58% against a 3M downtrend, Copper Miners COPX gained 1.51%, Bitcoin IBIT added 1.17%, and Global ex-US Bonds BNDX edged up 0.12%.

Equity: Counter-trend commodity plays led against a 3M downtrend

Movers

Outperformers: Brazil EWZ +2.77% (3M: -10.5%), Copper Miners COPX +1.51% (3M: -5.8%)

Underperformers: Healthcare XLV -0.82% (3M: +8.2%), South Korea EWY -0.67% (3M: +31.8%)

3M Leaderboard

Strong: Taiwan EWT +39.0%, South Korea EWY +31.8%, Technology XLK +30.9%

Weak: Brazil EWZ -10.5%, China Large Cap FXI -7.0%, China MCHI -6.5%

Fixed Income: Munis and global bonds led, corporates lagged

Movers

Outperformers: Global Bonds BNDX +0.12% (3M: +0.6%), Muni Bonds MUB +0.07% (3M: +0.8%)

Underperformers: Investment Grade Credit LQD -0.23% (3M: -0.7%), Corporate Credit VCIT -0.13% (3M: -0.3%)

3M Leaderboard (within FI scale)

Strong: EM Sovereign Bonds EMB +1.8%, High Yield Bonds JNK +1.0%, Muni Bonds MUB +0.8%

Weak: Long Treasuries TLT -1.5%, 7-10yr Treasuries IEF -0.9%, Investment Grade Credit LQD -0.8%

Specialty: Crypto rebounded against a 3M downtrend, biotech lagged

Movers

Outperformers: Ethereum Trust ETHA +2.58% (3M: -19.3%), Bitcoin Trust IBIT +1.17% (3M: -11.4%)

Underperformers: Biotechnology IBB -2.68% (3M: +11.6%), Clean Energy ICLN -0.41% (3M: +3.6%)

3M Leaderboard

Strong: Semiconductors SMH +42.0%, Momentum Factor MTUM +22.8%, Biotechnology IBB +11.6%

Weak: Gold Miners GDX -23.2%, Ethereum Trust ETHA -19.3%, Gold GLD -13.9%

Cross-Asset Read

The session fits the intro’s counter-trend rebound frame: weakness sat in established leaders, and strength came from parts of the field that rank near the 3M bottom. The 3M leadership stack sits in EWT at +39.0%, EWY at +31.8%, XLK at +30.9%, and SMH at +42.0%, while EMB at +1.8%, JNK at +1.0%, and MUB at +0.8% top fixed income; Friday broke from that standing trend as EWY and IBB fell and EWZ, COPX, ETHA, and IBIT rose from the weak tail. Volatility expands in XLV, and compression sits in EWG, INDA, VGK, AGG, BNDX, EMB, and DBMF; the regime is a counter-trend rebound with risk concentrated in single-name equity groups and muted across rates and diversifiers.

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.