US Markets up again Friday, Blockchain, Biotech and Clean tech outperforming

The US Indexes were all up on Friday helped by the Mag7. The riskier assets continued to run again after Thursday's pause. The VIX was down 1 at 18. The main indexes were; DJIA +0.09%, S&P 500 +0.40%% and Nasdaq +0.63% (Mag7 flat). On an equal weighted basis (our measure) the overall market was +0.61%. Breadth was flat at 51% (range of 12% to 88% over the last six weeks) volumes were weak at 7.4b (the average daily volume over the last year of 8b). 

One day returns as follows - equal weight basis: Mag7 +0.43% (AAPL +1.2%, AMZN +0.8%, NVDA +0.8%), large cap +0.46%, medium cap +0.31%, small cap +0.29% and micro cap +0.92%.

On a 1 and 2 week equal weight basis respectively; Market +2.3% and +2.6%, Mag7 +0.8% and -0.2%, Large caps +0.6% and +1.2%, Medium cap +1.0% and +1.9%, Small cap +2.4% and +3.0% and finally Micro cap +3.0% and +3.0%. 

Our risk monitor remains in favour of the larger cap stock but Small and Micro have now outperformed the market on both a 1w an 2w period. Small and Micro stocks have proved far more volatile than the Large and Medium cap stocks over the last eight weeks. Micro caps have outperformed Large cap by 2.4% over the last week but have underperformed the market by 18% over the last 12 months.

The sector bias was most definitely bullish. Gold (+5.2%) and Silver (+5%) stocks were strong again pushing Basic Materials to the best performer. Continued strength in Uranium stocks (+5.3%) and renewables (+1.6%) helped Energy but weakness in the oil stocks pulled the wider sector down. Healthcare was strong on Friday, it has outperformed the market over the last 2 weeks by 2%. This sector is flat over the last three months but when it runs it runs very aggressively - it was +55% from mid Nov23 to Feb24. Too early to say the is the start of another run but it is worth watching. Utilities beat the market, Water Utilities were the strongest industry but Nuclear stocks helped push the Electric Utilities up again. Tech outperformed on Friday, Blockchain continues to seesaw and was very strong on Friday (+6.5%) after a very strong Wednesday and weak Thursday. Semicon lagged the market.

A notable number of 52 week highs in virtually all sectors ex Energy: Basic Materials (Gold, Silver, non-paper Packaging), Consumer Cyclicals saw a high number (across the sector ex auto, Hotels & Entertaining and Media have both been strong recently), Financials saw a high number (across the sector), Industrials was strong again (across the sector ex Transport) and Technology (Software & IT Services and Technology Equipment again), Real Estate (Residential & Commercial REITs), Utilities (Electric and IPPs). Just to repeat but most of the sectors and industries mentioned have been strong for a number of days.

Notable high volumes in Basic Materials (Gold, Silver. Iron and Steel), Industrials (across the sector) and Technology (Software & IT Services again)