Daily Movers: Taiwan EWT Dropped 4.8%

Wednesday fit a rates-up, hardware-led risk reset. Taiwan EWT dropped 4.83% and long duration also weakened. Semiconductors SMH fell 4.79%, South Korea EWY lost 4.78%, Infrastructure PAVE dropped 3.70%, and Long Treasuries TLT slid 1.65%. Energy XLE rose 1.88%, China Large-Cap FXI gained 1.32%, Gold GLD advanced 0.46% against a 3M downtrend, and Short TIPS VTIP added 0.22%.

Equity: China and energy led, North Asia weakness deepened

Movers

Outperformers: Energy XLE +1.88% (3M: +2.4%), China Large Cap FXI +1.32% (3M: +0.4%)

Underperformers: Taiwan EWT -4.83% (3M: +2.5%), South Korea EWY -4.78% (3M: -6.6%)

3M Leaderboard

Strong: Value Factor VLUE +16.5%, Healthcare XLV +16.1%, Financials XLF +9.7%

Weak: Brazil EWZ -9.8%, South Korea EWY -6.6%, Communication Services XLC -5.1%

Fixed Income: Inflation protection led, duration stayed under pressure

Movers

Outperformers: Short TIPS VTIP +0.22% (3M: unch.), TIPS TIP +0.10% (3M: -1.0%)

Underperformers: Long Treasuries TLT -1.65% (3M: -3.0%), Preferred Stock PFF -0.86% (3M: -2.5%)

3M Leaderboard (within FI scale)

Strong: Global Bonds BNDX +0.3%, High Yield Bonds JNK +0.2%, Short Corporate VCSH +0.2%

Weak: Long Treasuries TLT -3.0%, Preferred Stock PFF -2.5%, Investment Grade Credit LQD -1.8%

Specialty: Gold rose against a 3M downtrend, cyclicals lagged

Movers

Outperformers: Gold GLD +0.46% (3M: -12.0%), Managed Futures DBMF -0.03% (3M: +1.5%)

Underperformers: Semiconductors SMH -4.79% (3M: +2.6%), Infrastructure PAVE -3.70% (3M: -1.2%)

3M Leaderboard

Strong: Biotechnology IBB +12.4%, Global REITs REET +6.6%, Real Estate VNQ +6.2%

Weak: Ethereum Trust ETHA -18.0%, Gold Miners GDX -16.9%, Bitcoin Trust IBIT -16.8%

Cross-Asset Read

Wednesday kept the rates-up, hardware-led risk reset intact: equity weakness centered in Asia hardware and semiconductors, and duration sold off alongside it. The 3M structure leans toward value and defense, with VLUE at +16.5%, XLV at +16.1%, XLF at +9.7%, and today’s declines in EWY and TLT extended their standing 3M downtrends while XLE and FXI moved inside flat 3M ranges. Volatility is selective, with expansion in SDY, XLP, and FTLS, compression in EWG, EWZ, IDV, AGG, BNDX, EMB, DBMF, and REET, and overbought or oversold status concentrated in EFAV, SCHD, and ICLN; the cross-asset regime is reset, not broad panic.

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.