Heading into today’s open, the Nasdaq Composite (QQQ) closed yesterday at $741.21, down -0.77%, while the SPDR S&P 500 ETF Trust (SPY) finished at $767.81, a decline of -0.64%. The VIX currently trades at 16.02, within its recent 13.80-20.88 range, as investors assess persistent inflation alongside strong corporate earnings reports.
This week we’re leaning into Semiconductors (SMH), Energy (XLE) and Growth/Tech (QQQ). SMH stands out with +8.2% 1-month momentum and is trading above its 50-day trend. We also favor Energy (XLE) – showing +0.5% 1-month momentum, also above its 50-day average, benefitting from a sustained macro tilt towards commodities. Finally, QQQ exhibits +4.3% one-month momentum and remains above its 50-day trend despite yesterday’s pullback.
Last week's sectors presented divergent results. Gold (GLD) delivered a positive return of +1.49%, fulfilling its safe haven role, while Healthcare/Defensive (XLV) lagged with a -0.59% weekly performance.
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