"They believed you can't mix rock, country, and rap, and that crossover is dead. I always knew it would work. And it will always work as long as you're really into it and like what you're doing." -- Kid Rock
NEW YORK (TheStreet) -- It has been a strong start to 2013, with the S&P 500 (SPY) up nearly 4% thus far in January. Risk-on has certainly been the right call exiting last year and entering this one despite the fiscal cliff noise and continued fears over another collapse in equities.
Our ATAC models used for managing our mutual fund and separate accounts have stayed long stocks since late-November, and there are no near-term signs of intermarket deterioration just yet to warrant concern. This has become less of a risk-on/risk-off environment, and more of a risk rotation one.
Within that risk rotation appears to be an eclectic group of winners and losers. Every week I run a screen on the over 1000 ETFs/ETNs I track to identify those areas of the investable landscape which are exhibiting extreme price behavior relative to their own respective 20 day moving averages. The idea is to see if there is a message happening beneath the surface of the market by looking at the opposite ends of winners and losers spectrum over a rolling 1 month period. Take a look below for the latest results.The Extreme Winners this week are a mixed bad, with Vietnam (VNM) on absolute fire since December. Interest rate cuts, rising PMI, and expansion by companies looking for cheaper labor than what China has to offer has resulted in a near parabolic move in the country's equity markets over a short period of time. Turkey (TUR) has also been in a remarkable uptrend, nearly doubling off of the January 2012 low. Platinum (PLTM) has been performing well, in line with outperforming auto stocks as expectations grow for increased demand on the industrial side. On the alternative energy front, Solar (TAN)and Wind (PWND) continue to fare nicely on renewed subsidies by the U.S. government and higher Oil prices. Interestingly, Spain (EWP) and Italy (EWI) have also started off in a big way emblematic of the risk-on environment we are currently in. As to the Extreme Losers, quite a few currency pairs relative to the U.S. Dollar (UUP) are showing up. The Japanese Yen (FXY)has been the big story, given Prime Minster Abe's big push to reflate the third largest economy in the world.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV