South Korea EWY Jumped 4.08%

Monday brought pro-cyclical rotation. Equity beta set the tone.

Risk-on rotation, Korea rebounded counter-trend

Movers

Leaders: South Korea EWY +4.08% (3M: -9.4%), Consumer Discretionary XLY +1.78% (3M: -0.1%)

Laggards: Utilities XLU -2.01% (3M: -7.2%), United Kingdom EWU -1.40% (3M: +1.2%)

3M Leaderboard

Strong: Brazil EWZ +17.7%, Energy XLE +16.6%, Healthcare XLV +10.0%

Weak: South Korea EWY -9.4%, Russell 2000 IWM -8.3%, S&P SmallCap Growth SLYG -8.0%

Duration under pressure, credit held better

Movers

Leaders: Muni Bonds MUB -0.01% (3M: -2.8%), High Yield Bonds JNK -0.02% (3M: -2.2%)

Laggards: Long Treasuries TLT -0.74% (3M: -3.9%), Investment Grade Credit LQD -0.50% (3M: -2.5%)

3M Leaderboard (within FI scale)

Strong: Short TIPS VTIP -0.1%, Short Corporate VCSH -0.4%, Global Bonds BNDX -0.9%

Weak: Long Treasuries TLT -3.9%, Preferred Stock PFF -3.4%, EM Sovereign Bonds EMB -3.2%

Tech-oriented plays led, real-asset proxies lagged

Movers

Leaders: Semiconductors SMH +1.61% (3M: -6.1%), Covered Calls Nasdaq JEPQ +1.17% (3M: +3.1%)

Laggards: Gold Miners GDX -1.41% (3M: +16.6%), Real Estate VNQ -1.14% (3M: -8.1%)

3M Leaderboard

Strong: Ethereum Trust ETHA +24.1%, Bitcoin Trust IBIT +22.9%, Gold Miners GDX +16.6%

Weak: Clean Energy ICLN -12.2%, Global REITs REET -9.6%, Real Estate VNQ -8.1%

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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.