Analyst Commentary:

• Markets were relatively flat last week, with the S&P 500 (SPX) rising by 0.3%. Growth areas performed slightly better, with the Nasdaq Composite (NASD) gaining just under 1%. Risk-on areas continue to dominate market leadership given their long-term strength.

• Tech representative XLK fell 4.8% in November—the most of any major sector. However, XLK has risen in each of the last ten trading days for its longest positive streak since 2020. Technology also sits atop our relative strength sector ranks.

• Despite slowing down over the last two months, precious metals are the strongest area within our Asset Class Group Scores page. Gold is now up 60% this year, marking the best year for the metal since 1979.

• Investor sentiment in AAII’s weekly survey rose to its highest level since January, but 2025’s average sentiment is on pace for the 4th lowest year since 1988. That said, years with pessimism were more likely to see positive gains the following year.

• The “January Effect” is the trend of small cap outperformance in the first month of the year, but the period from Dec 15th to Jan 15th has actually been more productive, with the Russell 2000 (RUT) outpacing the S&P 500 by an extra 1.4% compared to January.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on gold, you can read Wednesday'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.

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 are joined by Matt Kaufman, Global Head of ETFs, for a discussion around derivative income ETFs. We cover the history of Calamos, the explosion of interest in using options to generate income, and their approach to using autocallables with major equity benchmarks. To listen now, click HERE or on the image below. 

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