Daily Movers: Gold Miners GDX Rose 1.9%

Friday registered a hard-asset bid. Gold Miners GDX led. Long Treasuries TLT fell 0.67%, Investment Grade Corporates LQD dropped 0.40%, Health Care XLV slipped 0.60%, and Quality QUAL declined 0.59%. Energy XLE rose 1.39%, International Developed IDV gained 0.70%, and Gold GLD advanced 0.63%.

Equity: Energy and overseas value led, defensives lagged

Movers

Outperformers: Energy XLE +1.39% (3M: +7.4%), Intl High Dividend IDV +0.70% (3M: +1.8%)

Underperformers: Healthcare XLV -0.60% (3M: +14.6%), Quality Factor QUAL -0.59% (3M: +6.5%)

3M Leaderboard

Strong: Healthcare XLV +14.6%, Financials XLF +13.8%, Taiwan EWT +12.1%

Weak: Brazil EWZ -7.8%, South Korea EWY -5.7%, China Large Cap FXI -5.6%

Fixed Income: Long duration lagged, shorter credit held up

Movers

Outperformers: Short TIPS VTIP -0.01% (3M: unch.), High Yield Bonds JNK -0.07% (3M: +1.5%)

Underperformers: Long Treasuries TLT -0.67% (3M: -2.3%), Investment Grade Credit LQD -0.40% (3M: -1.1%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.5%, High Yield HYG +1.3%, EM Sovereign Bonds EMB +0.8%

Weak: Long Treasuries TLT -2.3%, Investment Grade Credit LQD -1.1%, Preferred Stock PFF -1.1%

Specialty: Precious metals led, clean energy and crypto lagged

Movers

Outperformers: Gold Miners GDX +1.93% (3M: -4.2%), Gold GLD +0.63% (3M: -6.0%)

Underperformers: Clean Energy ICLN -0.82% (3M: -17.5%), Bitcoin Trust IBIT -0.70% (3M: -22.8%)

3M Leaderboard

Strong: Biotechnology IBB +15.7%, Min Volatility USMV +6.6%, Real Estate VNQ +4.6%

Weak: Bitcoin Trust IBIT -22.8%, Ethereum Trust ETHA -18.3%, Clean Energy ICLN -17.5%

Cross-Asset Read

The hard-asset bid framed a session with commodity exposure firm and duration weak. The 3M structure sits in XLV, XLF, and EWT on the equity side at +14.6%, +13.8%, and +12.1%, in JNK, HYG, and EMB in fixed income at +1.5%, +1.3%, and +0.8%, and in IBB in specialty at +15.7%; Friday extended XLE’s +7.4% moderate uptrend, deepened TLT’s -2.3% moderate downtrend, and broke from the standing strength in XLV and QUAL, which hold 3M gains of +14.6% and +6.5%. Volatility is compressed in COPX, DIA, EFA, AGG, BNDX, EMB, ETHA, GDX, and GLD; overbought readings sit in ACWV, JEPI, RSP, and USMV, and the cross-section is selective, with hard assets bid inside a low-volatility field.

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.