EWY Sank 7.44% Tuesday as South Korea Led ETF Losses

South Korea EWY fell 7.44% on Tuesday, the sharpest move across the ETFs we track. Taiwan EWT also came under pressure, down 3.48%. Elsewhere, equity strength stayed selective: Copper Miners COPX rose 3.63% and Healthcare XLV gained 1.96%, while specialty exposures split, with Semiconductors SMH down 2.61% and Biotechnology IBB up 1.34%.

Equity: South Korea tanked 7.44%

Leaders: Copper Miners COPX +3.63% (3M perf: +2.9%), Healthcare XLV +1.96% (-5.7%)

Laggards: South Korea EWY -7.44% (3M perf: +43.4%), Taiwan EWT -3.48% (+31.3%)

3M Regime

Strong: South Korea EWY (3M perf: +43.4%), Taiwan EWT (+31.3%), Technology XLK (+23.1%)

Weak: India INDA (3M perf: -11.6%), China MCHI (-6.1%), Healthcare XLV (-5.7%)

Signals to Monitor

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

Overbought: Russell Growth IWF, US Technology IYW, Nasdaq 100 QQQ

Fixed Income: Long Treasuries slid 0.67%

Leaders: Short TIPS VTIP +0.04% (3M perf: +1.5%), High Yield HYG -0.14% (+0.3%)

Laggards: Long Treasuries TLT -0.67% (3M perf: -2.9%), Mortgage-Backed MBB -0.48% (-0.7%)

3M Regime

Strong: Short TIPS VTIP (3M perf: +1.5%), Preferred Stock PFF (+1.2%), TIPS TIP (+0.6%)

Weak: Long Treasuries TLT (3M perf: -2.9%), 7-10yr Treasuries IEF (-1.3%), Global Bonds BNDX (-1.1%)

Signals to Monitor

Volatility Compression: Muni Bonds MUB, Preferred Stock PFF, TIPS TIP

Specialty: Semiconductors slid 2.61%

Leaders: Biotechnology IBB +1.34% (3M perf: +0.2%), Min Volatility USMV +0.41% (-1.1%)

Laggards: Semiconductors SMH -2.61% (3M perf: +38.7%), Ethereum Trust ETHA -2.43% (+13.4%)

3M Regime

Strong: Semiconductors SMH (3M perf: +38.7%), Momentum Factor MTUM (+19.0%), Bitcoin Trust IBIT (+17.5%)

Weak: Gold GLD (3M perf: -6.4%), Gold Miners GDX (-5.7%), Min Volatility USMV (-1.1%)

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.