Week 33 Stock Markets Performance
We saw from the week 33 stock market trending report that most markets are still trending bullish. Although the price movement has been down this week and most markets price fell below their 10-day moving average. Some even fell below their 20-day moving average.
This down week was expected after 4 straight weeks of upward movement. Let’s review how each group I track fared. In summary, only Natural Gas, Utilities and Energy ended positive. Every major market and every country ended with losses.
Major Markets
First thing to notice is that all the major markets were down this week. Clearly the Dow Jones was the strongest as it fell the least. The Russell 2000 was hit the most which tells me that the weakness in the markets was broad-based.
I cannot predict whether next week will be positive or negative. However, from a trending perspective, all the markets are trending short-term bullish. Before this week they were also moving towards long-term bullishness.
Note that for all the above markets, the 10-day and 20-day are both above the 50-day moving average. So, overall trending is good. What we have to watch is whether the markets follow-through with that trending.
Major Sectors
As we saw with the major market indexes, most of the sectors also were down this week. In fact, other than Energy and Utilities, all of the 16 I track lost ground. The big losers were Gold Miners, Biotech, Transports and Metals & Mining.
We saw from the trending report that Utilities is the only sector that is trending perfectly bullish. That means it is trending short-term bullish as well as long-term bullish. Astoundingly, Utilities is up +13.7% over the trailing month. It is up +8.5% year-to-date. In comparison, the S&P 500 is still down -11.3% year-to-date.
As a side note, UTSL is a 3x leveraged instrument from Direxion that delivers 3x returns of the Utilities sector. As expected by the nature of its objective, the UTSL is up +45% over the trailing month. It is up +21% year-to-date.
Countries
Every country I track (I track 15 outside the US) was down this week without any exceptions. Just as all of them were up the prior week. The biggest losers were Singapore, South Korea and Germany.
Remember from the trending report we have seen that both Hong Kong and China are trending perfectly bearish. That means they are trending bearish both short-term and long-term. All the other countries are trending short-term bullish.
Alternate and Thematic Sectors
The first thing that stands out is the level of loss in 1 week for all the ARK funds. Four of the five I track have double digit losses. And they span different sectors. ARKG is Genomics and Gene Editing, ARKF is FinTech, ARKK and ARKW are innovation and web technologies.
Moreover, these ARK funds are down more than their similar counterparts. FINX is down -7.5% whereas ARKF is down -12.3%. XBI is down -6.9% whereas ARKG is down -13.2% which is almost double. CLOU is down -6.1% whereas ARKW is down -12.3% - again double. This cannot be a good sign for ARK funds and ARK funds holders.
All climate related sectors took it on the chin this week. Lithium was down -5.2%, Solar was down -4.9%, Clean Energy was down -4.4% and Autonomous Driving was down -5.5%. Note here too ARK Autonomous was down -7.3%.
This week Natural Gas was the only gainer from this group.