Daily Movers: Taiwan EWT Sank 5.0%

Tuesday reflected selective risk reduction, led by Taiwan EWT at -5.02% after a strong 3M run. Copper Miners COPX fell 4.91%, Long Treasuries TLT dropped 1.05%, Preferreds PFF slid 0.75%, and Clean Energy ICLN lost 3.93%. Energy XLE rose 2.84% against a 3M downtrend, Health Care XLV gained 1.53%, Biotech IBB advanced 1.50%, and Real Estate VNQ added 1.19%.

Equity: Old-economy sectors led, Taiwan and copper miners lagged

Movers

Leaders: Energy XLE +2.84% (3M: -7.8%), Healthcare XLV +1.53% (3M: +12.9%)

Laggards: Taiwan EWT -5.02% (3M: +42.9%), Copper Miners COPX -4.91% (3M: -2.4%)

3M Leaderboard

Strong: South Korea EWY +44.0%, Taiwan EWT +42.9%, Value Factor VLUE +31.7%

Weak: Brazil EWZ -9.3%, China Large Cap FXI -7.9%, Energy XLE -7.8%

Fixed Income: Short duration and credit held up, long duration lagged

Movers

Leaders: Short TIPS VTIP -0.02% (3M: +0.7%), High Yield Bonds JNK -0.10% (3M: +1.8%)

Laggards: Long Treasuries TLT -1.05% (3M: -1.3%), Preferred Stock PFF -0.75% (3M: +1.4%)

3M Leaderboard (within FI scale)

Strong: EM Sovereign Bonds EMB +3.4%, High Yield Bonds JNK +1.8%, High Yield HYG +1.6%

Weak: Long Treasuries TLT -1.3%, 7-10yr Treasuries IEF -0.4%, Int. Treasuries VGIT -0.2%

Specialty: Biotech and real estate led, clean energy and miners lagged

Movers

Leaders: Biotechnology IBB +1.50% (3M: +17.4%), Real Estate VNQ +1.19% (3M: +9.9%)

Laggards: Clean Energy ICLN -3.93% (3M: +8.3%), Gold Miners GDX -3.78% (3M: -19.2%)

3M Leaderboard

Strong: Semiconductors SMH +46.8%, Momentum Factor MTUM +26.3%, Biotechnology IBB +17.4%

Weak: Gold Miners GDX -19.2%, Ethereum Trust ETHA -16.6%, Gold GLD -11.7%

Notable Setups

Equity Counter-trend rally: Energy XLE (top mover today +2.84%, 3M laggard -7.8%)

Equity Trend-break risk: Taiwan EWT (top decliner today -5.02%, 3M leader +42.9%)

Equity Reversal setup: Energy XLE (vol compression building in 3M underperformers)

Equity Volatility Compression: India INDA, Energy XLE

Equity Volatility Expansion: Russell Growth IWF, Healthcare XLV

Equity Overbought: Financials XLF, Healthcare XLV

Fixed Income Reversal setup: 7-10yr Treasuries IEF (vol compression building in 3M underperformers)

Fixed Income Volatility Compression: Aggregate Bonds AGG, Global Bonds BNDX, 7-10yr Treasuries IEF

Specialty Exhaustion risk: Biotechnology IBB (3M leaders, flashing overbought)

Specialty Volatility Expansion: Long/Short Equity FTLS, Momentum Factor MTUM

Specialty Overbought: Biotechnology IBB, Min Volatility USMV

Cross-Asset Read

Selective risk reduction framed the session, with pressure concentrated in cyclical and rate-sensitive pockets while defensives and health-linked groups absorbed demand.
The 3M leadership set stays concentrated in $EWY, $EWT, $VLUE, $SMH, $MTUM, and $IBB; Tuesday extended the standing uptrends in $XLV and $IBB, broke from the strong 3M advance in $EWT, and left $XLE as the lone rebound against a 3M downtrend.
Volatility expands in $IWF, $XLV, $FTLS, and $MTUM, while compression holds in $XLE, $INDA, $AGG, $BNDX, and $IEF; selective risk reduction sits in a mixed regime, with leadership intact in parts of growth and health even as pressure hit narrower cyclical nodes.

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.