Daily Movers: South Korea EWY Fell 3.0%

Wednesday fit a momentum unwind. South Korea EWY fell 3.02% against the backdrop of a strong 3M advance. Elsewhere, Value VLUE fell 2.07%, Momentum MTUM declined 2.22%, Semiconductors SMH slid 1.59%, and Municipal Bonds MUB lost 0.18%. China MCHI rose 1.73% against a 3M downtrend, Communication Services XLC gained 1.73%, Ether ETHA climbed 2.40%, and Corporate Bonds LQD added 0.35%.

Equity: Asia split as China rallied, Korea lagged and value fell

Movers

Outperformers: Communication Services XLC +1.73% (3M: -2.5%), China MCHI +1.73% (3M: -6.1%)

Underperformers: South Korea EWY -3.02% (3M: +17.0%), Value Factor VLUE -2.07% (3M: +23.8%)

3M Leaderboard

Strong: Taiwan EWT +27.8%, Value Factor VLUE +23.8%, US Technology IYW +23.1%

Weak: Brazil EWZ -13.2%, Copper Miners COPX -10.3%, China Large Cap FXI -6.4%

Fixed Income: Credit led, munis lagged

Movers

Outperformers: Preferred Stock PFF +0.36% (3M: -0.7%), Investment Grade Credit LQD +0.35% (3M: -1.1%)

Underperformers: Muni Bonds MUB -0.18% (3M: +0.5%), Short TIPS VTIP +0.04% (3M: +0.3%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +0.8%, High Yield HYG +0.6%, EM Sovereign Bonds EMB +0.5%

Weak: Long Treasuries TLT -2.3%, 7-10yr Treasuries IEF -1.1%, Investment Grade Credit LQD -1.1%

Specialty: Momentum leaders lagged on the day

Movers

Outperformers: Ethereum Trust ETHA +2.40% (3M: -17.0%), Biotechnology IBB +0.65% (3M: +8.0%)

Underperformers: Momentum Factor MTUM -2.22% (3M: +15.8%), Semiconductors SMH -1.59% (3M: +30.7%)

3M Leaderboard

Strong: Semiconductors SMH +30.7%, Momentum Factor MTUM +15.8%, Biotechnology IBB +8.0%

Weak: Gold Miners GDX -26.6%, Ethereum Trust ETHA -17.0%, Gold GLD -16.3%

Cross-Asset Read

The cross-asset pattern fits the momentum unwind, with prior 3M winners under pressure and flat-to-weak 3M areas absorbing the bid. The 3M leadership stack is concentrated in EWT at +27.8%, VLUE at +23.8%, IYW at +23.1%, and SMH at +30.7%; Wednesday broke that standing trend in VLUE, SMH, and MTUM at +15.8%, while IBB at +8.0% extended its 3M advance. Volatility flags cluster in compression across seven tickers, EFA, EFAV, EWG, AGG, BNDX, EMB, and DBMF, while XLF is overbought; the regime is a selective momentum unwind with broad vol suppression outside that single equity heat signal.

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.