Daily Movers: South Korea EWY Sank 8.1%

Tuesday showed a selective de-risking profile, anchored by South Korea EWY at -8.13%. Taiwan EWT fell 3.16%, Semiconductors SMH dropped 4.09%, Gold Miners GDX slid 3.20%, and Preferreds PFF lost 0.59%. Energy XLE rose 1.76%, Health Care XLV gained 1.60%, Long Treasuries TLT added 0.38%, and Biotech IBB advanced 0.81%.

Equity: Defensive sectors led, Korea and Taiwan lagged

Movers

Leaders: Energy XLE +1.76% (3M: +5.9%), Healthcare XLV +1.60% (3M: +17.0%)

Laggards: South Korea EWY -8.13% (3M: -3.4%), Taiwan EWT -3.16% (3M: +13.8%)

3M Leaderboard

Strong: Healthcare XLV +17.0%, Taiwan EWT +13.8%, Value Factor VLUE +13.0%

Weak: Brazil EWZ -7.4%, Communication Services XLC -5.3%, South Korea EWY -3.4%

Fixed Income: Duration bid, income proxies lagged

Movers

Leaders: Long Treasuries TLT +0.38% (3M: -1.1%), TIPS TIP +0.23% (3M: -0.3%)

Laggards: Preferred Stock PFF -0.59% (3M: -0.9%), Muni Bonds MUB -0.18% (3M: +0.1%)

3M Leaderboard (within FI scale)

Strong: High Yield Bonds JNK +1.6%, High Yield HYG +1.5%, EM Sovereign Bonds EMB +1.3%

Weak: Long Treasuries TLT -1.1%, Preferred Stock PFF -0.9%, Investment Grade Credit LQD -0.5%

Specialty: Biotech and crypto led, chips and miners lagged

Movers

Leaders: Biotechnology IBB +0.81% (3M: +24.1%), Bitcoin Trust IBIT +0.49% (3M: -15.9%)

Laggards: Semiconductors SMH -4.09% (3M: +4.3%), Gold Miners GDX -3.20% (3M: +2.1%)

3M Leaderboard

Strong: Biotechnology IBB +24.1%, Momentum Factor MTUM +6.1%, Min Volatility USMV +5.0%

Weak: Clean Energy ICLN -16.6%, Bitcoin Trust IBIT -15.9%, Ethereum Trust ETHA -9.8%

Cross-Asset Read

Selective de-risking framed the session, with pressure concentrated in Asia and semiconductors while defensives and duration drew bids. The 3M leadership stack centers on IBB at +24.1%, XLV at +17.0%, EWT at +13.8%, and VLUE at +13.0%; Tuesday extended XLV and IBB, broke with EWT, and left fixed income leadership in JNK at +1.6%, HYG at +1.5%, and EMB at +1.3% largely unchanged by the day’s moves. Volatility is compressed in COPX, DIA, EFA, AGG, BNDX, EMB, ETHA, GDX, and IBB, and XLE is overbought; the cross-asset regime is selective, with drawdowns concentrated in EWY at -8.13%, EWT at -3.16%, and SMH at -4.09% rather than spread across the 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.