Daily Movers: South Korea EWY Jumped 3.0%

Monday fit a pro-cyclical rotation. South Korea EWY led, and weakness in duration and defensive exposures reinforced the move. Communication Services XLC fell 1.89%, Consumer Staples XLP dropped 1.64%, Long Treasuries TLT slid 0.84%, and Real Estate VNQ declined 0.86%. Copper Miners COPX rose 1.91%, Bitcoin IBIT gained 2.22%, and Gold Miners GDX climbed 2.13%.

Equity: Overseas cyclicals led, defensives lagged

Movers

Leaders: South Korea EWY +2.98% (3M: +3.5%), Copper Miners COPX +1.91% (3M: +5.5%)

Laggards: Communication Services XLC -1.89% (3M: -4.3%), Consumer Staples XLP -1.64% (3M: +0.8%)

3M Leaderboard

Strong: Taiwan EWT +18.1%, Healthcare XLV +15.6%, Value Factor VLUE +13.9%

Weak: Brazil EWZ -5.3%, Communication Services XLC -4.3%, China Large Cap FXI -2.3%

Fixed Income: Short duration held up, long duration lagged

Movers

Leaders: Short TIPS VTIP -0.02% (3M: unch.), Short Corporate VCSH -0.05% (3M: +0.9%)

Laggards: Long Treasuries TLT -0.84% (3M: -1.6%), Preferred Stock PFF -0.68% (3M: -0.6%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.8%, High Yield HYG +1.7%, EM Sovereign Bonds EMB +1.3%

Weak: Long Treasuries TLT -1.6%, Investment Grade Credit LQD -0.9%, TIPS TIP -0.7%

Specialty: Alternative assets led, defensives lagged

Movers

Leaders: Bitcoin Trust IBIT +2.22% (3M: -18.7%), Gold Miners GDX +2.13% (3M: +5.2%)

Laggards: Real Estate VNQ -0.86% (3M: +5.3%), Min Volatility USMV -0.72% (3M: +6.4%)

3M Leaderboard

Strong: Biotechnology IBB +21.1%, Momentum Factor MTUM +8.1%, Semiconductors SMH +6.8%

Weak: Bitcoin Trust IBIT -18.7%, Clean Energy ICLN -16.7%, Ethereum Trust ETHA -14.1%

Cross-Asset Read

Pro-cyclical rotation framed Monday across equities, rates, and specialty exposures.
The 3M structure concentrates in EWT, XLV, and VLUE within equity, JNK, HYG, and EMB within fixed income, and IBB, MTUM, and SMH within specialty; COPX and GDX extended moderate uptrends, IBIT rose against a 3M downtrend, and EWY sits outside a 3M trend at +3.5%.
Volatility stays compressed across 8 flagged ETFs, with compression in COPX, DIA, EFA, AGG, BNDX, EMB, GDX, and GLD; the regime is rotational with muted cross-asset volatility.

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.