Daily Movers: Gold Miners GDX Dropped 2.9%

Wednesday fit a hard-asset unwind. Gold Miners GDX dropped sharply and set the tone; weakness extended beyond miners. Gold GLD fell 1.58%, United Kingdom EWU lost 1.07%, Health Care XLV declined 1.00%, and Long Treasuries TLT retreated 0.20%. Industrials XLI rose 1.09%, Taiwan EWT gained 0.94%, Infrastructure PAVE advanced 1.04%, and Momentum MTUM added 0.53%.

Equity: Industrials and Taiwan led, health care and U.K. lagged

Movers

Outperformers: Industrials XLI +1.09% (3M: +3.7%), Taiwan EWT +0.94% (3M: +3.3%)

Underperformers: United Kingdom EWU -1.07% (3M: +4.9%), Healthcare XLV -1.00% (3M: +17.1%)

3M Leaderboard

Strong: Healthcare XLV +17.2%, Financials XLF +13.7%, Copper Miners COPX +11.3%

Weak: South Korea EWY -9.6%, Consumer Discretionary XLY -3.4%, Russell Growth IWF -3.1%

Fixed Income: Credit held up, duration lagged

Movers

Outperformers: Preferred Stock PFF +0.03% (3M: -0.9%), High Yield Bonds JNK -0.02% (3M: +1.3%)

Underperformers: Global Bonds BNDX -0.27% (3M: -0.2%), Long Treasuries TLT -0.20% (3M: -1.2%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.3%, High Yield HYG +1.2%, Short Corporate VCSH +0.7%

Weak: Long Treasuries TLT -1.2%, Preferred Stock PFF -0.9%, Investment Grade Credit LQD -0.8%

Specialty: Risk-on rotation favored cyclicals, gold lagged

Movers

Outperformers: Infrastructure PAVE +1.04% (3M: -0.7%), Momentum Factor MTUM +0.53% (3M: -2.9%)

Underperformers: Gold Miners GDX -2.94% (3M: +19.9%), Gold GLD -1.58% (3M: +3.1%)

3M Leaderboard

Strong: Biotechnology IBB +26.7%, Ethereum Trust ETHA +20.4%, Gold Miners GDX +19.9%

Weak: Clean Energy ICLN -23.4%, Semiconductors SMH -6.7%, Momentum Factor MTUM -2.9%

Cross-Asset Read

A hard-asset unwind framed the session across equities, rates, and specialty exposures. Three-month leadership concentrates in XLV at 17.2%, XLF at 13.7%, COPX at 11.3%, IBB at 26.7%, ETHA at 20.4%, and GDX at 19.9%; Wednesday broke from that standing strength in XLV and GDX, while fixed income leadership is shallow, with JNK at 1.3%, HYG at 1.2%, and VCSH at 0.7%. Volatility is compressed in COPX, DIA, EEM, AGG, BNDX, EMB, FTLS, GDX, and GLD, and overbought status concentrates in ETHA, GDX, and IBIT; the cross-section is selective, with pressure centered in hard assets inside a broadly compressed regime.

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.