Daily Movers: Energy XLE Surged 4.7%

Monday reflected a hard-asset bid. Energy XLE posted the session's dominant advance as long duration came under pressure. On the downside, Long Treasuries TLT fell 0.85%, Investment Grade Credit LQD dropped 0.55%, Semiconductors SMH declined 2.28%, and South Korea EWY lost 1.79%. On the upside, Copper Miners COPX rose 1.68%, Managed Futures DBMF gained 1.26%, Biotech IBB climbed 1.17%, and Short TIPS VTIP edged up 0.02%.

Equity: Resource shares led

Movers

Leaders: Energy XLE +4.66% (3M: +8.8%), Copper Miners COPX +1.68% (3M: +4.5%)

Laggards: South Korea EWY -1.79% (3M: -14.2%), Real Estate XLRE -1.29% (3M: +0.9%)

3M Leaderboard

Strong: Healthcare XLV +17.9%, Financials XLF +13.2%, Dow Jones DIA +9.0%

Weak: South Korea EWY -14.2%, Brazil EWZ -9.2%, Communication Services XLC -4.1%

Fixed Income: Duration under pressure

Movers

Leaders: Short TIPS VTIP +0.02% (3M: -0.1%), Muni Bonds MUB -0.08% (3M: -0.3%)

Laggards: Long Treasuries TLT -0.85% (3M: -3.6%), Investment Grade Credit LQD -0.55% (3M: -1.8%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +0.7%, High Yield HYG +0.6%, Short Corporate VCSH +0.3%

Weak: Long Treasuries TLT -3.5%, Preferred Stock PFF -2.3%, Investment Grade Credit LQD -1.8%

Specialty: Diversifiers and biotech led, semis and crypto lagged

Movers

Leaders: Managed Futures DBMF +1.26% (3M: +2.6%), Biotechnology IBB +1.17% (3M: +17.7%)

Laggards: Semiconductors SMH -2.28% (3M: +0.5%), Ethereum Trust ETHA -2.28% (3M: -19.1%)

3M Leaderboard

Strong: Biotechnology IBB +17.7%, Min Volatility USMV +7.6%, Covered Calls Nasdaq JEPQ +3.4%

Weak: Bitcoin Trust IBIT -20.3%, Ethereum Trust ETHA -19.1%, Clean Energy ICLN -14.3%

Cross-Asset Read

The hard-asset bid framed the cross-asset session: commodities and inflation-sensitive exposures led, and duration lost ground. The 3M structure centers on XLV, XLF, and IBB on the upside and EWY, TLT, and ETHA on the downside; XLE and IBB extended existing advances, and EWY, TLT, and ETHA extended existing declines. Volatility expands in four funds, DVY, SCHD, SDY, and FTLS, and compresses in nine funds, EWG, EWU, EWZ, AGG, BNDX, EMB, ETHA, IBB, and IBIT; the regime is selective, with hard-asset strength alongside compressed bond volatility and concentrated stress in EWY, TLT, and ETHA.

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.