EWY Sank 2.87% Thursday as Korea Led ETF Losses

South Korea (EWY) fell 2.87% on Thursday, the sharpest move across the ETFs we track, with Brazil (EWZ) close behind at -2.76% and Clean Energy (ICLN) down 2.86%. Elsewhere, weakness in long-duration fixed income persisted as Long Treasuries (TLT) slipped 0.50% and Investment Grade Credit (LQD) lost 0.41%, while the upside was limited to modest gains in Managed Futures (DBMF) and Min Volatility (USMV).

Equity: South Korea tanked 2.87%

Leaders: Russell Growth IWF +0.25% (3M perf: +10.2%), US Technology IYW +0.06% (+24.4%)

Laggards: South Korea EWY -2.87% (3M perf: +47.0%), Brazil EWZ -2.76% (+5.1%)

3M Regime

Strong: South Korea EWY (3M perf: +47.0%), Taiwan EWT (+39.0%), Technology XLK (+25.3%)

Weak: Healthcare XLV (3M perf: -6.2%), India INDA (-5.9%), China MCHI (-2.9%)

Signals to Monitor

Volatility Compression: Global Min Vol ACWV, Copper Miners COPX, Dow Jones DIA

Overbought: Taiwan EWT, South Korea EWY, Russell Growth IWF

Fixed Income: Long Treasuries fell 0.50%

Leaders: Muni Bonds MUB +0.00% (3M perf: unch.), Short TIPS VTIP -0.08% (+1.3%)

Laggards: Long Treasuries TLT -0.50% (3M perf: -1.0%), Investment Grade Credit LQD -0.41% (-0.5%)

3M Regime

Strong: Preferred Stock PFF (3M perf: +2.2%), Short TIPS VTIP (+1.3%), TIPS TIP (+0.9%)

Weak: Long Treasuries TLT (3M perf: -1.0%), 7-10yr Treasuries IEF (-0.5%), Investment Grade Credit LQD (-0.5%)

Signals to Monitor

Volatility Compression: Muni Bonds MUB, Preferred Stock PFF

Specialty: Clean Energy slid 2.86%

Leaders: Managed Futures DBMF +0.33% (3M perf: +5.0%), Min Volatility USMV +0.31% (-0.3%)

Laggards: Clean Energy ICLN -2.86% (3M perf: +14.4%), Infrastructure PAVE -2.64% (+7.5%)

3M Regime

Strong: Semiconductors SMH (3M perf: +41.7%), Bitcoin Trust IBIT (+25.8%), Ethereum Trust ETHA (+23.0%)

Weak: Gold GLD (3M perf: -2.3%), Gold Miners GDX (-0.8%), Min Volatility USMV (-0.3%)

Signals to Monitor

Volatility Compression: Managed Futures DBMF, Ethereum Trust ETHA, Gold Miners GDX

Overbought: Covered Calls Nasdaq JEPQ, Momentum Factor MTUM, Semiconductors SMH

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.