Stocks remain oversold with small and mid-caps once again tipping into extreme oversold territory. Recent price action in the equity market has done the most damage to small caps. Despite breaking into neutral territory just over a week ago, the Core S&P Small-Cap ETF (IJR) has become the most oversold with a 2.88% decline over the last five trading sessions. The Russell 2000 (IWM) has seen equally large losses which have resulted in its trend to shift from ‘sideways’ to ‘down’ in our Trend Analyzer. The Micro-Cap ETF (IWC) is also in a downtrend and has fallen the most in the past week. Although most of the major index ETFs are still up by double-digit percentages in 2019, the same cannot be said for small caps. IWM’s 8.84% YTD gain is the best among small caps while IWC is only up 2.82% YTD.
In the commodities space, only precious metals have managed to edge out any sort of gain in the past week as gold and silver ETFs sit over 2% higher. Silver has outperformed much more dramatically, rising 6.11%. Despite this recent outperformance, SLV is still slightly lagging behind gold in terms of YTD performance, even if it extended in the short-term. Currently, SLV is 12.53% and more than two standard deviations above its 50-day. Both Gold Shares (GLD) and DB Precious Metals (DBP) are also extremely overbought while the DB Gold Fund (DGL) and the Gold Trust (IAU) just a hair below extreme overbought territory. Oil (USO) has taken it on the chin the past week after failing a test of its 50-DMA. Over the past five days, it is down 1.81%. Along with most other commodity ETFs in our Trend Analyzer, oil is in a long term downtrend while the aforementioned precious metals ETFs and Agribusiness ETF (MOO) are in uptrends. Only MOO has a good timing score given this uptrend in combination with its oversold levels. Start a two-week free trial to Bespoke Institutional to access our interactive Trend Analyzer and much more.