Daily Movers: Copper Miners COPX Sank 3.2%

Thursday registered a defensive rotation. Copper Miners COPX led the downside, and strength shifted toward duration and real estate. Gold Miners GDX fell 2.96%, Gold GLD dropped 1.47%, and China MCHI lost 1.20%. Communications XLC rose 2.07%, South Korea EWY gained 1.56% against a 3M downtrend, Long Treasuries TLT added 0.58%, and Real Estate VNQ climbed 1.31%.

Equity: Asia diverged, copper weakness deepened

Movers

Leaders: Communication Services XLC +2.07% (3M: -3.3%), South Korea EWY +1.56% (3M: -5.3%)

Laggards: Copper Miners COPX -3.15% (3M: -6.6%), China MCHI -1.20% (3M: -8.4%)

3M Leaderboard

Strong: Healthcare XLV +15.3%, Financials XLF +14.7%, Taiwan EWT +13.3%

Weak: China MCHI -8.4%, China Large Cap FXI -8.2%, Brazil EWZ -7.3%

Fixed Income: Rate-sensitive bonds led, short-duration lagged

Movers

Leaders: Long Treasuries TLT +0.58% (3M: -1.5%), EM Sovereign Bonds EMB +0.44% (3M: +1.1%)

Laggards: Short TIPS VTIP +0.10% (3M: -0.1%), Short Corporate VCSH +0.15% (3M: +0.7%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.5%, High Yield HYG +1.3%, EM Sovereign Bonds EMB +1.1%

Weak: Long Treasuries TLT -1.5%, Preferred Stock PFF -0.8%, TIPS TIP -0.8%

Specialty: Real estate led, gold weakness deepened

Movers

Leaders: Real Estate VNQ +1.31% (3M: +3.7%), Global REITs REET +0.79% (3M: +3.8%)

Laggards: Gold Miners GDX -2.96% (3M: -8.3%), Gold GLD -1.47% (3M: -7.3%)

3M Leaderboard

Strong: Biotechnology IBB +15.2%, Min Volatility USMV +7.8%, Covered Calls Nasdaq JEPQ +4.2%

Weak: Bitcoin Trust IBIT -20.5%, Ethereum Trust ETHA -16.4%, Clean Energy ICLN -15.9%

Cross-Asset Read

Defensive rotation framed the session across assets, with duration and real estate firm and cyclicals and hard-asset proxies weak. The 3M leadership sits in XLV, XLF, and EWT at 15.3%, 14.7%, and 13.3%; Thursday extended the 3M downtrends in MCHI and COPX, and EWY rose against a 3M downtrend. Volatility expands in DVY and SCHD, and compression holds in COPX, EMB, GDX, and IBB; overbought status in ACWV, JEPI, QUAL, and USMV leaves the cross-section defensive and selective.

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.