Bang … Whimper … (TWTW – Jul 19-23, 2021)

What a week – no?

Well – let’s hit a few highlights, shall we?

But before doing that, let’s have a look at the week over week % changes across sectors:

 

Now, I don’t know about you, but if, after last Monday’s 700 points plunge on the Dow, anyone had said that by the end of the week, the losses would turn into gains, and volatility, which was spiking rather forcefully would have just entirely settled down again … well, I probably wouldn’t have believed it …

To visualize all of this, a few pics:

CBOE Volatility Index: (Nasty spike, particularly Monday, but renewed calm found by Friday …)

Admittedly, when Monday turned out to be the worst day since last October:

 

we could all genuinely be forgiven for thinking that possibly, just possibly, a more meaningful correction – brought on by fears associated with the Delta Variant – was underway. By week’s end – It would appear as though at least for now – “don’t worry, be happy” can continue to prevail.

So – back to that sector performance picture above:

  1. Tech dominating – this is the Canadian Tech ETF (XIT) you see here – with no doubt a chunk of these gains linked to Shopify (almost 30% of that ETF) – which for the first time ever crossed CAD 2,000
  2. Energy – after dropping as low at CAD 7.71, ending the week at CAD 8.12 = off 5.3% from the week’s low
  3. Consumer and healthcare outperformance = the latter defensive; the former? Pent-up demand? That said, Materials and Industrials also up by a similar order of magnitude … Bottom line: tug of war between “growth” winning (lower yields help here), versus “reopening/value/cyclical” winning = well, Delta Variant maybe not as big a potential problem as Monday’s market action suggested …

BUT – we may not be out of the woods – in fact it is entirely possible to have more such episodes of volatility hitting markets. Fingers crossed we don’t … but it may well happen …

BTW: did you see that exchange earlier this week between Dr. Fauci, and Senator Paul Rand? Click HERE!

 

Of course, what else did we get this past week? Well, the Tokyo Olympics are now underway (Does that make sense???) at a cost apparently of some USD 20 Billion, surpassing the cost of the London Olympics by some USD 11 Billion … INNNNSANE! I too love the Olympics, but I don’t quite get how with less than 1/3 of the Japanese population vaccinated, and the Delta Variant causing problems there … I don’t get how these 2020 Tokyo Olympics are such a great idea … but that’s me … That said, good luck and good health to all the athletes (I hope).

And … did we need another (ok the richest one of them all …) Billionaire heading for space? Course not – how ESG is that? Well, for the E, I am pretty sure it isn’t all that E friendly … but whatever … Thank you $AMZN shareholders and employees, you made that possible …

 

ETFs related:

  • The TSX launched its latest ETF Screener recently => Click HERE!
  • CREDO had a chance to catch up with Rocky Ieraci (Sterling Mutuals) – who gave us a demo of his firm’s “OneBoss” solution – a solution which makes accessing ETFs (executing trades) exceedingly easy for MFDA Advisors => Click HERE!
  • iShares Canada = July Distributions announcement: click HERE!
  • Mindpath Virtual 2021 => Mindpath, in partnership with CREDO Consulting will be holding Mindpath Virtual 2021 (8th Annual ETF conference) on October 26, 27, 2021 this year (with bonus days Oct 25 and 28th).

Reach out, contact us for details: ozy.camacho@credo.ca ; yrebetez@credo.ca

to access the Commersphere platform: Click HERE!

Registering to the Commersphere platform via the link above will get you into Mindpath Virtual 2020. Being registered for MV 2020, will automatically get you registered for MV 2021. More news on that front can be expected shortly.

Oh – and CHINA …  a Picture worth a thousand words: Looking at Chinese Tech vs NASDAQ:

 

USD/CAD = despite energy being particularly volatile of late, AND the USD having recently strengthened against CAD even as Oil was reaching new highs (possibly as some were safe-haven currency “shopping” on COVID-19 Delta Variant news?) … Interesting that USD/CAD after spiking early on in the week (alongside VIX), ended up pretty much flat versus the prior week …

Enjoy your week-end, Summer is going by rather quickly …