Quantmatix Weekly Insights

Focus: US

Market Close: Fri, 02 January 2026

Weekly Insights

Quantmatix Market Pulse 

Market Breadth

  • Equities remain constructive, with 65% of stocks accelerating positively and 55% holding positive trends.
  • Commodities show modest upside bias, while fixed income continues to lag, reflecting a risk-on but selective environment.

Where Signals Are Concentrating

Our priority filters highlight strong upside reversals in:

  • Software & Services
  • Materials
  • Consumer Durables

Conversely, take-profit / exit signals are clustering in:

  • Energy
  • Pharma
  • Utilities

Magnificent 7 – Mixed but Rotational

Negative momentum / pullback risk:
  • Microsoft and Amazon (pressure in Software & Retail)
  • Positive reversals / upside potential:
  • Tesla and Alphabet (supporting Autos & Communication Services)
Stabilising influences:
  • Apple (mild positive) and NVIDIA (neutral)
  • Meta continues to advance, reinforcing Communication Services resilience.
Signal Maturity Check: Most Magnificent 7 signals are fresh (15–43 days old), indicating recent shifts. Microsoft is the exception, with a more mature negative signal (141 days)—worth monitoring as earnings approach.

Bottom Line:
  • The data continues to support selective equity exposure
  • Rotation is the dominant theme: capital is moving away from defensive sectors and crowded trades, toward targeted opportunities in Consumer, Communication Services, Materials, and select Industrials.


Quantmatix US Sector Research Note

Conviction Overweight

  • Banks (5 Dec, Positive Reversal): 94% positive acceleration vs 82% positive trend; regime up; no priority Negative Reversal / Take Profits / Exit. Driver: Regional banks +19.2% YTD outperformance.
  • Materials (26 Dec, Positive Reversal): 92% positive acceleration vs 72% positive trend; 20 positives/0 negatives. No Negative Reversal / Take Profits / Exit >7; catalyst: +39.6% YTD gains.
  • Consumer Services (No recent, Mixed): 84% positive acceleration vs 42% positive trend (Bullish Surge). Trigger: Resilient spending dynamics.

Bullish Surge Sectors
  • Software & Services
  • Diversified Financials

Conviction Underweights
  • Energy (26 Dec, Negative Reversal): 65% deceleration vs 69% positive trend (Bear Plunge); 2 positives/20 negatives. Context: +5.1% YTD amid supply pressures.
  • Pharma, Biotechnology & Life Sciences (19 Dec, Mixed Reversals): 55% positive acceleration vs 57% positive trend; 15 positives/10 negatives. Regime down; context: XBI +35%.
  • Utilities (21 Nov, Negative Reversal): 86% deceleration vs 43% positive trend; 1 positive/3 negatives. Context: Eroded defensive role.
  • Tech Hardware & Equip (10 Oct, Declining): 62% deceleration vs 38% positive trend; 4 positives/0 negatives. Context: 25% YTD growth with volatility.
Caution Flags

  • Energy's Bear Plunge amplified by Negative Reversal / Take Profits / Exit >7
  • Pharma's mixed profile with Negative Reversal / Take Profits / Exit li
  • Real Estate shows tension: Deep Positive Signal like 
Neutral / Hold Insights:
  • Pharma Biotech & Life: 55% positive acceleration vs 57% (ratio 0.96); 15 positives/10 negatives – hold
  • Health Care Equip & Serv: 54% positive acceleration vs 57% (ratio 0.95); 9 positives/6 negatives – hold
  • Semis & Semi Equip: 49% positive acceleration vs 54% (ratio 0.91); 3 positives/0 negatives. No Deep Positive Signal <-3 or Negative Reversal / Take Profits / Exit >7 prioritized;
  • Automobiles & Components: 57% positive acceleration vs 52% (ratio 1.1); 1 positive/0 negative. No Negative Reversal / Take Profits / Exit – hold
  • Household & Personal Prod: 54% positive acceleration vs 39% (ratio 1.4); 1 positive/0 negative. No Negative Reversal / Take Profits / Exit
  • Telecomm Services: 50% positive acceleration vs 45% (ratio 1.11); 0 positives/1 negative. No Negative Reversal / Take Profits / Exit

Swing Trading Ideas (1–4 Weeks) - TEVO Methodology

  • LIBERTY MEDIA CO (LLYVK:XNGS) | MT-Qscore -7.6 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 88.64 | 5.3% | Hit Rate: 100%
  • EXTRA SPACE STOR (EXR:XNYS) | MT-Qscore -4.9 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 137.45 | 4.9% | Hit Rate: 84%
  • ALEXANDRIA REAL (ARE:XNYS) | MT-Qscore -8.6 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 53.65 | 9.6% | Hit Rate: 63%
  • AFFIL MANAGERS (AMG:XNYS) | MT-Qscore 8.7 | Medium-Term Reversal negative signal At today’s Market Close. | Target1: 268.35 | -7.1% | Hit Rate: 54%
  • CLOROX CO (CLX:XNYS) | MT-Qscore -7.7 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 106.01 | 5.1% | Hit Rate: 62%
  • REALTY INCOME (O:XNYS) | MT-Qscore -5.4 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 59.1 | 3.1% | Hit Rate: 74%
  • ZOETIS INC (ZTS:XNYS) | MT-Qscore -7.3 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 132.61 | 5.3% | Hit Rate: 74%
  • PENTAIR PLC (PNR:XNYS) | MT-Qscore -5.6 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 109.99 | 4.3% | Hit Rate: 71%
  • UNITED THERAPEUT (UTHR:XNGS) | MT-Qscore 9.1 | Medium-Term Reversal negative signal At today’s Market Close. | Target1: 450.62 | -9.3% | Hit Rate: 59%
  • MOTOROLA SOLUTIO (MSI:XNYS) | MT-Qscore -8.4 | Medium-Term Reversal positive signal At today’s Market Close. | Target1: 393.75 | 3.3% | Hit Rate: 68%

TEVO trades pick oversold/overbought but improving setups with positive expected value, strong historical hit-rates, giving you only the highest-probability swing opportunities each week.

Market Movements

Major US indices ended the week with slight daily advances but overall losses, as the Dow Jones rose 0.7% on Friday while down 0.7% week-to-date, the Russell 2000 gained 1.1% daily but fell 1.0% WTD, the S&P 500 edged up 0.2% but declined 1.0% over the week, and the VIX dropped 2.9% daily yet surged 6.7% WTD.

Top Sector Gainers (1-Day)*

Energy +2.0%
Materials +1.9%
Industrials +1.6%

* equal-weighted

Top Sector Losers (1-Day)

Information Technology -0.2%
Communication Services -0.1%
Real Estate -0.1%

Energy and materials led the advance across the Russell 1000, while technology and communication services faced downward pressure amid broader weekly declines.

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Disclaimer: These insights are generated using AI and are provided for informational purposes only. They do not constitute financial advice or a recommendation to buy or sell any security. The content may be incomplete or contain errors and should not be relied upon for investment decisions. Always consult a qualified financial adviser before making financial choices.