– All major asset classes declined on concerns of a new Covid variant. Treasuries rallied strongly on Black Friday.
– Energy stocks were the only safe haven as every other major sector and factor declined.
– Argentina led all international equity declines, correcting by more than 15% over the course of the week.
– Initial Jobless claims have plunged to the lowest level since 1969.
– US Equities and Treasuries rallied modestly, while international equities and commodities moved lower.
– Broad US equities moved higher, but there was significant dispersion. Only 3 of 8 US sectors advanced, and pure Growth was the only factor to move higher.
– US equities and Asia ex China were the only sources of equity price strength. 39 of 45 countries declined.
– Commodities may have declined, but Lumber bucked the trend surging a whopping 24.5% in a week to a higher high.
– First initial buy signal for Long Bond Momentum (for Treasuries) since the end of 2018.
– Net Levered ETF sentiment signals record enthusiasm for stocks.
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Market Risk Index scales from 0 to 100%. Higher readings correspond with higher risk markets. Scores below 25% are bullish. Scores between 25-75% are neutral, and scores above 75% are markets vulnerable to major drawdowns.
Model Category Readings (Percentiles)
