Analyst Commentary:

• Domestic equity indices were relatively flat over the last week, with the S&P 500 (SPX) dipping 0.15% as fears of global conflict continue to loom over investors.

• Strength from crude oil (CL/) pushed commodities up to first place in our relative strength asset class rankings. However, the group to ranks neck and neck with both international and domestic equities, so more movement could be in store. 

• The defense subsector has become one of the highest relative strength areas of the market with global conflict causing a recent uptick in demand, seeing aerospace and defense fund PPA gain almost 20% over the last two months.

• Latin American equities are rebounding following a disastrous 2024, as fund ILF returned to a positive trend and is up 21% YTD. While the region is acceptable, other international areas such as Europe hold more relative strength.

• Momentum representative MTUM is outperforming the S&P 500 by almost 10% YTD. Outperformance in the first half of the year has continued into the second half on average, which is another positive for momentum strategies. 

Nasdaq Dorsey Wright’s Chart of the Week:

 To read more on energy and oil movement, you can read Friday's featured article HERE.

Major US Index Technical Review:

A summary of the performance of major indices, in addition to their Point & Figure information. 

The Group Score Minute:

Senior Equity Specialist Steve Raymond dives into the latest trends and changes within our Asset Class Group Scores. To listen now, click HERE or on the image below. 

Nasdaq Dorsey Wright Products:

The AdvisorShares Dorsey Wright FSM U.S. Core ETF (DWUS) is comprised of 2 ETFs—primarily in domestic large-cap equities—that demonstrate in our opinion, favorable relative strength characteristics. During periods in which the Advisor believes the market indicates broad equity weakness and cash strength, the Fund invests in fixed-income ETFs with a short or ultra-short duration, money market funds, cash and cash equivalents. To learn more about DWUS, Click HERE.

Want More? Don't Miss Out on Our Podcasts!

This week, we discuss changes to our asset class rankings, gold, weakness from the US Dollar, defense stocks breaking out, and technical updates to large cap growth. To listen now, click HERE or on the image below. 

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