Market reversal on Friday with Mag7 continuing to lead stocks lower

The US Indexes were all heavily down on Friday and also for the weak. The Mag7 continues to lag the market. The VIX was up 2 at 18 which in surprisingly low considering the apparent volatility. The main indexes were; DJIA -1.69%, S&P 500 -1.71% and Nasdaq -2.2% (Mag7 -2.55%). On an equal weighted basis (our measure) the overall market was -2.02%. Breadth of 19% (daily range since the election is 9% to 81%). Daily volumes of 12b (the range since the election is 8b to 18b). 

Daily returns on an equal weight basis: Market -2.02%, Mag7 -2.55% (AAPL -0.1%, META -1.6%, MSFT -1.9%, GOOGL -2.7%, AMZN -2.8%, NVDA -4.1%, TSLA -4.7%), large cap -1.52%, medium cap -2.25%, small cap -2.16% and micro cap -2.01%. 

Weekly returns on an equal weight basis: Market -2.71%, Mag7 -3.32% (AAPL +0.4%, MSFT +0.2%, GOOGL -3%, NVDA -3.2%, TSLA -5.1%, AMZN -5.3%, META -7.2%), large cap -1.2%, medium cap -2.6%, small cap -2.7% and micro cap -3.1%.

Only a handful of sub industries were in positive territory on Friday and only one sector - Consumer non-Cyclical. Beverages +2% (non-alcoholic +2.6%), Distillers +1.9%, Personal Products +0.8%, Household Product +0.7%, Brewers +0.7%, Food Processors +0.6% and Tobacco +0.5%. Outside of consumer non-cyclical the only other positive sub sectors on Friday were Multiline Utilities +0.5% and Water & Related Utilities +0.1% helping Utilities (-0.37% on Friday) to outperform the market and Financial & Commodity Market Operators +0.4% on the day. As expected, on a heavily down day, the Bull sectors of; Technology -2.6% (Blockchain -5.8%, IT Services -3%, Communication & Networking -3%, Computers -2.7%.. Semiconductor was -3.8% but has outperformed the market by 2.1% over the last two weeks), Consumer Cyclical -2.7% (Specialty Retailers -3.3%, Hotels & Entertainment -3.2% and Homebuilding -2.8%), and Industrials -2.9% (Transportation -3% with Passenger Transport -6%, Construction -4%, Aerospace -3.7%, Machinery -2.9%) all underperformed the market on Friday however the surprise was Healthcare which was -1.8% on the day with both Pharma -1.3% and Biotech -1.7% outperforming the market albeit down on the day. Energy reversed the recent positive two week trend by underperforming the market on Friday at -2.6% with Fossil Fuels -2.5%, Renewables -3.3% and Uranium -4.5%.

The number of 52 week highs was low reflecting market weakness and included a number of Chinese stocks, US stocks on 52 week highs included: Consumer non-Cyclicals (Coca-Cola, Primo brands and Philip Morris), Financials (Lexinfintech, Bain Capital Speciality Finance, Saratoga Inv Corp), Healthcare (AbbVie, Axsome Therapeutics), Technology (Innodata, AT&T), Utilities (American Electric, DTE Energy, Evergy, Exelon, TXNM and WEC)

High volumes were seen in the following sector: Basic Materials (Mineral resources), Consumer Cyclicals (across the sector), Energy (Fossil Fuels), Financials (Banking), Healthcare (across the sector), Industrials (across the sector) and Technology saw a very high number (Software & IT Services, Technology Equipment)