Weekly Performance Summary

Commentary:  The S&P500 jumped mid-week after the Fed announced its 50-basis point cut. The weekly gain was 1.4%, fueled by optimism of more potential rate cuts. Energy led the way this week, up 3.7%.  Baker Hughes Co. (+7.9%), which accounts for about 3% of the ETF, and Marathon Oil Co. (+6.9%) helped push the sector […]

We think XLY and XLU are the sectors to watch. Both are overbought in the near-term, hard to believe they both could continue higher from here. We start the month giving XLU the nod, but we are ready to pivot if min vol. sectors can’t sustain leadership.

Commentary: Technology rebounded this week, leading all other sectors up 8.1%. Microsoft (+7.2%), Broadcom (+22.4%), Nvidia (+15.8%) along with other big technology stocks helped it claw back almost all its losses from last week, which was its worst week in a year and a half.  These were some of the big technology stocks that struggled earlier

Equities have bounced from oversold conditions with momentum and high beta improving in the near-term.

Factor performance is confirming the rotation to “risk off” among equity investors since mid-July

Deane Gyllenhaal is an ETF and Index strategies industry expert who contributes to ETF Insight, a NY-based digital marketing firm. Deane brings two decades of investment leadership and portfolio construction experience with him. Previously, he was a senior portfolio manager at Geode Capital, Hartford Investments, and State Street Global Advisors.

Higher prices in 2024 have been driven by Growth, Large Size, Momentum, Quality and Free Cash Flow. Equity market corrections have benefitted Value, Low Vol. High Beta has been a structural laggard in this cycle.