Black Friday stocks outperform

The wider US market was up on Monday with the Mag7 holding back the Nasdaq. The VIX was flat at 15 on Friday, this seems too low considering the recent market swings. The main indexes on Monday were; DJIA +0.99%, S&P 500 +0.30% and Nasdaq flat (Mag7 -0.2%). On an equal weighted basis (our measure) the overall market was +1.28% on Friday. Breadth of 59% (daily range of 22% to 71% over the last 10 days) . Daily volumes of 8.5b (the range since the election is 8b to 13b). 

Daily returns on Friday: Mag7 -0.2% (AMZN +2.2%, GOOGL +1.8%, TSLA -4%, NVDA -4.2%), large cap +0.67%, medium cap +1.44%, small cap +1.55% and micro cap +1.25%.

Week returns as follows - equal weight basis: Market +5%, Mag7 -0.4% ( AAPL +2.1%, META +1.9%, NVDA -3%, GOOGL -4.4%), large cap +3.1%, medium cap, +5.2%, small cap +5.8% and micro cap +5%. 

Our risk monitor remains in favour of the larger cap stock. Micro caps have underperformed the market by 0.9% over the two weeks - it has fallen from a peak of 1.6% a week ago.

Black Friday plays helped the Consumer Cyclicals shine on Monday, the sectors was +2.1% with Household Goods +4.6%, Department Stores +3.7%, Computer & Electronics +3.9%, Apparel 3.2% and Discount Stores +2.8%. Industrials continued to 'quietly' outperform with breadth of 72% on Monday, Aerospace & Defence +3.3%, General Dynamics GD and Lockheed Martin LMT continue to underperform. Technology was the fourth best performing sector on Monday. The underlying driver of this performance has been Blockchain and super computing including Quantum Computing, but these paused for breath on Monday. Computers, Phones & Household +6.2% (Black Friday effect?), Semicons were +2.6%. Healthcare beat the market on Monday continuing the recovery of the last few day - since Trump won the election. this sector has underperformed the market by c6%. Renewable Energy Equipment +5.2% was not enough to support the Energy sector which was -0.7% on the day with Uranium -2.6%. In Basic Materials Gold, Silver and Iron all underperformed but Aluminum was the one area of strength at +2.2% on the days and now +6.5% on the week. Utilities underperformed the market, Natural Gas +1.2% (+5.8% on the week) was the best performer.

A notable number of 52 week highs was seen in the following sectors: Consumer Cyclicals very strong (across there sector but Hotels and Media & Publishing very strong), Energy (Oil & Gas Equipment) , Financials, exceptionally high number, particularly Banking & Investment Services. Industrials was strong again (across the sector but Machinery, Tools, Heavy Vehicles was the strongest) and Technology very strong (Software & IT Services, Technology Equipment), Utilities (across the sector ex Water).

Notable high volumes in all sector: High levels in Basic Materials (Metals & Mining) Consumer Cyclicals (across the sector), Financials (across the sector), Healthcare (across the sector), Industrials (across the sector) and Technology saw a very high number (Software & IT Services, FinTech and Technology Equipment)