Heading into today’s open, the Nasdaq Composite (QQQ) closed at $732.07, up +0.95%, while the S&P 500 (SPY) finished at $777.88, a gain of +0.39%. With the 10-Year Treasury Yield currently at 4.70% and VIX settling at 14.65, market sentiment appears buoyed by recent economic data suggesting resilience despite persistent inflation concerns.
This week we’re leaning into Energy (XLE), Gold (GLD), and Healthcare/Defensive (XLV). Energy is showing +7.1% one-month momentum, trading above its 50-day trend and benefitting from a macro environment favoring commodities. Gold also demonstrates strong +9.3% one-month momentum, exceeding its 50-day trend as a potential debasement/safe haven asset. Finally, Healthcare (XLV) exhibits +4.1% one-month momentum while remaining above its 50-day trend, offering defensive positioning within portfolios.
Last week saw strong performance across our prior picks: Gold (GLD) returned +1.04%, Energy (XLE) delivered +6.09%, and Financials (XLF) gained +5.66%. While all sectors posted gains, the outperformance of Energy and Financials highlights continued appetite for cyclical exposure alongside safe haven assets like gold.
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