The US Indexes were down on Tuesday, the Nasdaq and S&P were helped by by Mag7 (TSLA) stocks again. The VIX was up 1 at 16, this continues to look low considering the recent market swings. The main indexes on Tuesday were; DJIA -0.61%, S&P 500 -0.39% and Nasdaq -0.32% (Mag7 +1.9%). On an equal weighted basis (our measure) the overall market was -0.45%. Breadth of 30% (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 -0.45%, Mag7 +0.3% (TSLA +3.6%, AAPL +1%, MSFT +0.6%, NVDA -1.2%), large cap -0.5%, medium cap -0.9%, small cap -0.9% and micro cap -0.06%.
Weekly returns - equal weight basis: Market -1.98%, Mag7 +4.2% (TSLA +19.7%, GOOGL 5.5%, AMZN +2.7%, MSFT +2.5%, AAPL +2.3%, META +0.1%, NVDA -3.5%), large cap -1.3%, medium cap -1.3%, small cap -2.2% and micro cap -2.3%.
Our risk monitor remains in favour of the larger cap stock but only just.
Mag7 beat the indexes again on Tuesday and was the best performing asset class albeit on the back of the continued rise of TSLA. The recent strong performing sub industries experienced patchy performance yesterday Space & Drones were up, as was Quantum Computing (+17.5%). Blockchain was down -2.2% and Semiconductors were also down albeit they beat the market. Finally Solar / Wind stocks were also down. Across all market cap bands the main movers on Tuesday were: Healthcare +0.2% (Pharmaceuticals +1.3%, Biotech +0.1%) was the only sector in positive territory. Consumer Non-Cyclicals had a good day in a weak market with Food Retailing +2.2%. Utilities -0.2% outperformed with Water Utilities the best performer (though the worst performing Utility class over the last 3 months). Technology sector was pulled down by softness in Blockchain and Fintech but Telecommunications was marginally up and Software & IT Services outperformed. Within Consumer Cyclicals -0.4%, Speciality Retailers were +0.2% (Computers & Electronics +0.8%, Apparel & Accessories +1.1% .. Home Furnishings was +0.5%% on the day and has consistently outperformed over the last four weeks +29.8% over this period). Weakness in Gold (-0.8%), Silver (-0.5%), Iron & Steel -1.2% and Aluminum -1.5% pulled Basic Materials lower at -0.4%. Energy sector was weak again at -0.4% with all sub sectors down except Renewable Fuels +4% were down, Uranium stocks were -2.6%. Financials and Industrials, the two best performing sectors over the last 3 months were the weakest sectors yesterday. Financials with breadth of 16% was -0.9% (Banking -1.2%) and Industrials with breadth of 21% was -1.3% (Machinery Tools & Heavy Vehicles -1.6%, Construction and Engineering -2.3%)
A notable number of 52 week highs was seen in the following sectors: Consumer Cyclicals (Hotels and Media & Publishing), Financials, (Banking & Investment Services), Technology (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)