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“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb

Happy Tuesday!  If you were off yesterday, we hope you had a good long holiday weekend.  There’s not much in the way of fireworks going on in the US equity markets this morning as futures are little changed.  The only major item of note is the plunge in shares of the Chinese ride-hailing company, DIDI, after Chinese authorities ordered the removal of its app from various platforms in China.  The only economic data of note for today is the ISM Services report at 10 AM.  Anything could happen, but based on the current setup, we could be in for a quiet week.

Read today’s Morning Lineup for a recap of all the major market news and events from around the world, a discussion of the latest services sector PMI data, other economic data from around the world, the latest US and international COVID trends including our vaccination trackers, and much more.

We’ve talked a lot about the equity market’s impressive ability over the last several months to rotate between sectors and styles without causing too much in the way of a ripple in the overall market.  The snapshot of major index ETFs below shows a great example of this rotation as last week’s leaders were the YTD laggards and the laggards were the YTD leaders.  Two cases in point?  With a decline of 2.43% last week, the Russell Micro-Cap ETF (IWC) remains the top-performing index ETF YTD even as it was the worst-performing ETF of the week.  Conversely, even after its 2.63% gain last week, the Nasdaq 100 ETF (QQQ) is still up less than any of the other ETFs in the screen.

The scatter chart below shows the rotation in another way.  Starting out at the top left, we have QQQ as the worst-performing index ETF YTD but the best performer last week.  From there, as you move to the right, YTD performance increases while performance over the last week gets progressively worse.