Energy XLE Jumped 2.60%

Friday brought a pro-cyclical rotation. Energy led, long duration weakened, and leadership concentrated in commodity-linked equities.

Commodity-linked equities led

Movers

Outperformers: Energy XLE +2.60% (3M: +19.5%), Brazil EWZ +1.77% (3M: +18.7%)

Underperformers: Consumer Staples XLP -1.92% (3M: +4.1%), India INDA -1.90% (3M: -5.0%)

3M Leaderboard

Strong: Energy XLE +19.5%, Brazil EWZ +18.7%, Healthcare XLV +10.1%

Weak: Industrials XLI -9.9%, China MCHI -9.7%, China Large Cap FXI -8.4%

DAILY · 3M

Duration under pressure

Movers

Outperformers: Muni Bonds MUB +0.18% (3M: -1.4%), Global Bonds BNDX +0.02% (3M: -0.7%)

Underperformers: Long Treasuries TLT -0.49% (3M: -1.7%), Investment Grade Credit LQD -0.41% (3M: -1.2%)

3M Leaderboard (within FI scale)

Strong: Short TIPS VTIP +0.5%, Short Corporate VCSH unch., TIPS TIP -0.3%

Weak: Preferred Stock PFF -3.6%, EM Sovereign Bonds EMB -2.2%, Long Treasuries TLT -1.7%

DAILY · 3M

Semis and managed futures led, miners and clean energy lagged

Movers

Outperformers: Managed Futures DBMF +0.83% (3M: +5.1%), Semiconductors SMH +0.74% (3M: -3.9%)

Underperformers: Gold Miners GDX -1.82% (3M: +5.9%), Clean Energy ICLN -0.93% (3M: -10.1%)

3M Leaderboard

Strong: Bitcoin Trust IBIT +25.0%, Ethereum Trust ETHA +22.5%, Biotechnology IBB +10.3%

Weak: Infrastructure PAVE -10.2%, Clean Energy ICLN -10.1%, Global REITs REET -8.4%

DAILY · 3M

Related

• Tactical Market Trends: Defensive Equity Rotation Deepens into Close
• Intermediate Market Trends: Dividend and Low-Volatility Lead Equity
• SPY candlestick signals: forward returns by pattern and sentiment
• Fear and greed: today's market sentiment reading

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.