South Korea EWY Jumped 6.04% Tuesday

South Korea EWY jumped 6.04% on Tuesday, the strongest move across the ETFs we track. The session’s upside was concentrated in risk assets, with Value Factor VLUE up 3.54% and Semiconductors SMH gaining 3.14%, while fixed income posted smaller advances led by Preferred Stock PFF and Long Treasuries TLT.

Equity: South Korea jumped 6.04%

Leaders: South Korea EWY +6.04% (3M perf: +39.5%), Value Factor VLUE +3.54% (+16.8%)

Laggards: Communication Services XLC -0.40% (3M perf: -1.5%), Covered Calls S&P JEPI -0.30% (-0.9%)

3M Regime

Strong: South Korea EWY (3M perf: +39.5%), Taiwan EWT (+34.8%), Value Factor VLUE (+16.8%)

Weak: Copper Miners COPX (3M perf: -13.8%), India INDA (-7.5%), China MCHI (-6.3%)

Signals to Monitor

Volatility Compression: Copper Miners COPX, Dow Jones DIA, High Dividend DVY

Overbought: Taiwan EWT, South Korea EWY, US Technology IYW

Fixed Income: Preferred Stock climbed 0.61%

Leaders: Preferred Stock PFF +0.61% (3M perf: +1.4%), Long Treasuries TLT +0.55% (-0.4%)

Laggards: Short TIPS VTIP -0.14% (3M perf: +1.4%), TIPS TIP -0.07% (+1.1%)

3M Regime

Strong: Short TIPS VTIP (3M perf: +1.4%), Preferred Stock PFF (+1.4%), TIPS TIP (+1.1%)

Weak: Long Treasuries TLT (3M perf: -0.4%), Global Bonds BNDX (-0.4%), Investment Grade Credit LQD (-0.2%)

Signals to Monitor

Volatility Compression: Preferred Stock PFF

Specialty: Semiconductors climbed 3.14%

Leaders: Semiconductors SMH +3.14% (3M perf: +31.4%), Clean Energy ICLN +2.55% (+13.5%)

Laggards: Biotechnology IBB +0.11% (3M perf: -1.9%), Min Volatility USMV +0.11% (unch.)

3M Regime

Strong: Semiconductors SMH (3M perf: +31.4%), Momentum Factor MTUM (+13.6%), Clean Energy ICLN (+13.5%)

Weak: Gold Miners GDX (3M perf: -12.6%), Gold GLD (-7.9%), Biotechnology IBB (-1.9%)

Signals to Monitor

Volatility Compression: Managed Futures DBMF, Ethereum Trust ETHA, Long/Short Equity FTLS

Overbought: Clean Energy ICLN, Covered Calls Nasdaq JEPQ, Momentum Factor MTUM

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.