Daily Movers: South Korea EWY Jumped 6.8%

Tuesday registered a pro-cyclical rotation. South Korea EWY led with a 6.80% gain. Copper Miners COPX rose 5.83%, Semiconductors SMH climbed 5.55%, and Momentum MTUM advanced 3.83%. Long Treasuries TLT gained 0.77%. Brazil EWZ fell 0.91%, Utilities XLU dropped 0.56%, Global Real Estate REET lost 0.28%, and Real Estate VNQ declined 0.15%.

Equity: Global cyclicals led, defensives lagged

Movers

Leaders: South Korea EWY +6.80% (3M: +4.6%), Copper Miners COPX +5.83% (3M: +9.9%)

Laggards: Brazil EWZ -0.91% (3M: -6.7%), Utilities XLU -0.56% (3M: -4.3%)

3M Leaderboard

Strong: Value Factor VLUE +18.3%, Technology XLK +15.5%, US Technology IYW +14.8%

Weak: Brazil EWZ -6.7%, Utilities XLU -4.3%, Communication Services XLC -3.2%

Fixed Income: Duration rallied, inflation-linked debt lagged

Movers

Leaders: Long Treasuries TLT +0.77% (3M: -1.4%), Mortgage-Backed MBB +0.62% (3M: +0.2%)

Laggards: Short TIPS VTIP +0.04% (3M: -0.2%), TIPS TIP +0.18% (3M: -0.9%)

3M Leaderboard (within FI scale)

Strong: EM Sovereign Bonds EMB +1.4%, High Yield Bonds JNK +1.3%, High Yield HYG +1.1%

Weak: Long Treasuries TLT -1.4%, TIPS TIP -0.9%, Preferred Stock PFF -0.3%

Specialty: Growth leadership extended, real estate lagged

Movers

Leaders: Semiconductors SMH +5.55% (3M: +13.6%), Momentum Factor MTUM +3.83% (3M: +10.3%)

Laggards: Global REITs REET -0.28% (3M: +5.5%), Real Estate VNQ -0.15% (3M: +4.5%)

3M Leaderboard

Strong: Semiconductors SMH +13.6%, Biotechnology IBB +11.8%, Momentum Factor MTUM +10.3%

Weak: Ethereum Trust ETHA -20.4%, Bitcoin Trust IBIT -19.9%, Clean Energy ICLN -10.9%

Cross-Asset Read

Pro-cyclical rotation framed the cross-asset session; cyclical equity and specialty exposure led, and duration firmed.
The 3M structure concentrates in growth and cyclicals, with VLUE, XLK, and IYW atop the equity leaderboard and SMH, IBB, and MTUM atop specialty; COPX, SMH, and MTUM extended existing uptrends, while EWY rose from a flat 3M base.
Volatility expands in 4 funds, DVY, SCHD, SDY, and FTLS, while compression holds in 9 funds, EWG, EWZ, FXI, AGG, BNDX, EMB, ETHA, IBIT, and ICLN; the regime is pro-cyclical, with leadership concentrated in growth and materials and volatility compressed across most fixed income.

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.