U.S. equities once again shrugged off the drama unfolding on the congressional stage by closing down less than -.5% for the week.
A possible trade deal with China offset the negative influence of the impeachment hearings. That was a strong performance after the huge run-up to new all-time highs for most key U.S. equity benchmarks.
However, Small Caps or Grandpa Russell continue to lag, highlighting the fact that tariffs have not helped U.S.-based companies.
Value stocks closed positive this week, while growth lagged, another important theme we have been watching unfold the past few months. Get ready for some seismic shifts as we enter a new decade, and this could be one of them.
Red hot semiconductors led the declines, down -2.5% for the week. Semis passed the baton to a different spec sector Biotech, which rose a +3.5%.
This week’s highlights are:
- Risk gauges backed off and moved to a neutral reading
- High yield debt weakened versus U.S. bonds, a strong risk-off sign
- Volume patterns are still positive
- Market Internals remain under pressure
- Semis could be topping out
- The Retail sector performed poorly, down over -2% for the week as we head into the strongest seasonals
- Oil moved into an accumulation phase
