Witan Way

Edition № 17 ·

The rise holds, but is narrowing

Solid but narrower action, gold weakened, bitcoin cooled, commodities pausing.

This week in one reading

Risk appetite remains present and equities are holding above their long-term trend, but the advance is resting on a narrower set of names. This narrowing is the central signal of the week, without constituting a regime reversal.

Market pulse

Weekly market levels and returns
AssetLevelWeeklySince 1 Jan
Equities747.03+1.1%+9.9%
Gold371.54-0.1%-6.7%
Commodities29.45-2.2%+31.5%
Bitcoin63,372-0.8%-28.6%

The regime reading

This week in three points

Stocks remain above their long-term trend, constructive regime intact.
The rally is resting on fewer stocks: this is the deterioration to watch.
Awaited confirmation: a return of a greater number of rising values.
PillarTrendMomentumCoherenceState
EquitiesFavourableNeutralConfirmedFavourable but less broad
GoldUnfavourableNeutralConfirmedWeakening
CommoditiesFavourableFavourableConfirmedInflationary push
BitcoinUnfavourableNeutralConfirmedCooling

What changed

Compared to last week, the stock market rally is now being supported by a smaller number of stocks, whereas it had previously rested on a broader base; the weakening of gold has furthermore been confirmed.

What did not change

Equities remain above their long-term trend and appetite for risk remains present, with no shift toward a defensive regime.

What would be premature to conclude

A constructive trend excludes neither short-term consolidation nor a short-term reversal.

The weakness in gold and bitcoin is not sufficient to invalidate the favourable regime for equities; it would be premature to conclude that a broad reversal is under way simply because these two assets are declining.

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