Category: Equity Leaders Weekly

This week, SIA’s analysis of the Equal Weight Indices (EQIs) highlighted significant gains and declines across various sectors. The SIA Energy Equal Weight Index (EWI) emerged as a strong performer, climbing 7 positions, signaling growing strength. The SIA Health Services EWI also gained 5 positions, though both remain in the SIA Unfavored zones. In contrast, the SIA Computer Hardware EWI was the largest decliner, falling 9 positions and moving into the SIA Neutral zone, signaling a shift in risk. Other decliners include the SIA Automotive and SIA Tobacco EWIs, showing continued weakness in these sectors.

The Canadian stock market has shown mixed performance in early 2025, with the S&P/TSX 60 large-cap index leading the way, while smaller-cap stocks saw modest gains. The SIA S&P/TSX Index Report highlights Kinross Gold and Agnico Eagle Mines as top performers, while Barrick Gold lags behind, reflecting significant underperformance over the past three months.

In today’s Equity Leaders Weekly, the SIA platform highlights early relative strength moves, including gains in Central Europe, Germany, and Poland ETFs. Natural gas prices have surged 53.37% over the past six months, with the NATGAS contract showing strong relative strength and a perfect SMAX score of 10/10. Meanwhile, the iShares MSCI Poland ETF (EPOL) and other Central European ETFs also display bullish signs. Could these trends signal improving market conditions in Europe and, potentially, peace in Ukraine?

The market shows a mixed performance with Energy leading gains, while Real Estate and Technology face slight declines. Both the S&P 500 and NASDAQ are testing key support and resistance levels, signaling potential for market movement depending on future breaks or reversals. Volatility remains in focus, with recent fluctuations reflecting potential market adjustments.

In 2024, the S&P 500 gained 23.31%, slightly behind 2023’s performance, while the S&P 100 and NASDAQ saw returns of 29.25% and 28.64%, respectively. Sector performance favored technology and financial services, with SIA Telecommunications and Computer Software posting significant gains. Heading into 2025, sectors like Computer Software and Aerospace show strong relative strength, while Metals and Mining, along with Energy, remain Unfavored.

As 2024 comes to a close, this analysis reviews the performance of key benchmarks, including the S&P/TSX Composite, Russell 2000, and other major indexes. Using SIA’s point-and-figure prowess, the document highlights significant trading ranges, support and resistance levels, and market trends, providing insights for advisors as they evaluate the market’s outlook for the year ahead.

2024 has been a strong year for equity markets, with major indices like the S&P 500 and NASDAQ showing significant gains, while smaller cap stocks have caught up later in the year. Sector performance has been equally notable, with areas such as telecommunications and financial services delivering impressive returns, especially in the final quarter. Globally, South American markets have stood out, while China, supported by fiscal and monetary interventions, made a strong comeback in the latter part of the year, though India’s performance remained relatively subdued compared to other regions.

In light of recent geopolitical developments, including Trump’s threats of tariffs on BRICS nations and South Korea’s market instability following the declaration and lifting of martial law, the global investment landscape remains volatile. The SIA Heatmap analysis highlights Argentina’s strong performance, while South Korea’s market continues to struggle with poor relative strength. As tensions persist, the SIA platform provides valuable tools for identifying both risks and opportunities across international markets, with specific attention needed on regions such as China and Singapore.

The equity markets showed positive gains across US indices, with small and mid-cap stocks leading, particularly the Russell 2000, which rose 5.11%. SIA’s Sector Scope highlights sectors of opportunity, including banking, insurance, and finance, with strong relative strength, while retail, aerospace, and electronics and semiconductors are sectors of risk due to declining relative strength. The retail sector, combining low relative strength with a high bullish percent, signals potential vulnerability, emphasizing the importance of monitoring sectors for both opportunities and risks. This analysis is enhanced with the powerful SIA AI tools, which provide actionable insights for navigating market trends and optimizing portfolio decisions.

Bitcoin has shown remarkable performance, with a YTD gain of 108.84%, particularly standing out against gold since late 2023. Institutional adoption of Bitcoin is on the rise, reflected in the growing number of funds and ETFs dedicated to cryptocurrencies. As Bitcoin broke key resistance levels, it established support near $75,000, with technical indicators continuing to signal strength as the price approaches the psychological $100,000 level. The ongoing trend suggests that Bitcoin remains a significant player in the alternative asset space, gaining increasing attention from both advisors and institutions alike.