South Korea EWY Sank 2.31%

Wednesday registered a pro-cyclical rotation. Commodity-linked equities led, and leadership concentrated in cyclical and non-duration exposures.

Overseas markets led, defensives lagged

Movers

Outperformers: Brazil EWZ +2.14% (3M: +9.0%), Japan EWJ +0.98% (3M: +4.7%)

Underperformers: South Korea EWY -2.31% (3M: -1.5%), Consumer Staples XLP -1.53% (3M: -2.6%)

3M Leaderboard

Strong: Energy XLE +17.1%, Copper Miners COPX +12.5%, Brazil EWZ +9.0%

Weak: Utilities XLU -11.3%, S&P SmallCap Growth SLYG -9.3%, Industrials XLI -8.7%

Munis and mortgages held up, duration lagged

Movers

Outperformers: Muni Bonds MUB +0.82% (3M: -5.3%), Mortgage-Backed MBB +0.11% (3M: -4.0%)

Underperformers: Long Treasuries TLT -0.58% (3M: -8.3%), EM Sovereign Bonds EMB -0.48% (3M: -4.6%)

3M Leaderboard

Strong: Short TIPS VTIP -0.6%, Short Corporate VCSH -1.1%, High Yield HYG -2.0%

Weak: Long Treasuries TLT -8.3%, Muni Bonds MUB -5.3%, Investment Grade Credit LQD -5.0%

Alternatives mixed, miners and REITs lagged

Movers

Outperformers: Semiconductors SMH +0.35% (3M: -1.8%), Managed Futures DBMF +0.31% (3M: +6.6%)

Underperformers: Gold Miners GDX -1.43% (3M: +17.0%), Real Estate VNQ -0.99% (3M: -6.6%)

3M Leaderboard

Strong: Ethereum Trust ETHA +65.1%, Bitcoin Trust IBIT +39.2%, Gold Miners GDX +17.0%

Weak: Clean Energy ICLN -15.8%, Infrastructure PAVE -9.0%, Real Estate VNQ -6.6%

Related

• Tactical Trends: Korea Slips Below Its 20-Day MA, Equity Leadership Thins
• Regime Trends: Equity Leadership Contracts Into Asia and US Growth
• 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.