The US Indexes were mixed on Monday, the Nasdaq and S&P pushed higher by very strong performance by Mag7 stocks again. The VIX was down 1 at 15, this continues to look low considering the recent market swings. The main indexes on Monday were; DJIA -0.25%, S&P 500 +0.38% and Nasdaq +1.24% (Mag7 +1.9%). On an equal weighted basis (our measure) the overall market was +0.02%. Breadth of 41% (daily range of 22% to 71% over the last 4 weeks). Daily volumes of 11b (the range since the election is 8b to 13b).
Daily returns on - equal weight basis: Market +0.02%, Mag7 +1.9% (TSLA +6.1%, GOOGL +3.6%, AMZN 2.4%), large cap -0.32%, medium cap +0.04%, small cap +0.33% and micro cap -0.08%.
Weekly returns - equal weight basis: Market -2.04%, Mag7 +4.8% (TSLA +18.8%, GOOGL 12.1%, AMZN +3%, META +1.8%, AAPL +1.7%, MSFT +1.3%, NVDA -4.9%), large cap -1.8%, medium cap -1.3%, small cap -1.6% and micro cap -2.6%.
Our risk monitor remains in favour of the larger cap stock but only just.
Another Groundhog Day on the markets with the Mag7 massively outperforming the market and pockets of performance elsewhere in the areas that have been strong since the Election namely, Space, Drones, Quantum Computing, Blockchain, Solar/Wind Utilities and Semiconductors. Across all market cap bands the big movers on Monday were: Technology +1.3% (FinTech 2.7%, Blockchain +5.8%, SemiCon +2.6%, Comms & Networking +2.2%). Industrials (Aerospace +7% - Space and Drone technology). Healthcare was inline with the market albeit it is the worst performing sector over the last 2 weeks (Biotech +0.2%). Financials -0.1% (Banking +0.5%, this sub sector has been strong since the election). Within Consumer Cyclicals -0.6% Speciality Retailers were +0.5% (Computers & Electronics +3.3%, Apparel & Accessories +1.3% .. Home Furnishings was -0.4% on the day but has consistently outperformed over the last four weeks +30.1% over this period). Weakness in Gold (-1.6%) & Silver (-1.2%) pulled Basic Materials lower at -0.9%. Energy was the worst performing sector at -1.9% with all sub sectors down, Fossil Fuels -2%, Renewable Fuels -1.6% and Uranium -1.2%.
A notable number of 52 week highs was seen in the following sectors: Consumer Cyclicals strong (Hotels and Media & Publishing very strong), Financials, Banking & Investment Services, Industrials (Machinery, Tools & Heavy Vehicles and Aerospace). Technology very strong (Software & IT Services, Technology Equipment).
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, Technology Equipment)