The utilities sector continues its tear, which has been one of the clearest risk-off signals you’ll find anywhere in the markets. The dollar was the only major asset class to post gains last week, reinforcing the notion that investors could be raising cash here by selling both bonds and equities.

With small-caps outperforming and Treasuries looking especially weak here, the steady leadership from utilities has a bit of a curiosity factor to it. The 10-year Treasury yield is up around 19 basis points over the past month, but I don’t necessarily expect a swift move above the 1% level here. Lumber prices appear to at least be stabilizing here, if not necessarily strengthening.

Utilities continue to lead despite a general optimism that additional stimulus is on the way, which traditionally has resulted in more risk-on behavior. Tech resumes its overall uptrend, but the fact that both utilities and small-caps have been outperforming over the past several weeks is a bit curious.