INSTAT B US Markets Daily Pulse Report, incl. Canadian & Latin American companies traded today on NYSE/Nasdaq, Wed., February 11, 2026
Cyclical Rotation Intensifies as Capital Flees Financials and Tech; Commodities and Canadian/Latin American Resources Surge to Multi-Week Highs
Executive Summary:
Wednesday’s session reveals a decisive rotational shift in institutional positioning. Capital is rotating aggressively out of rate-sensitive Financials and overvalued Consumer Discretionary names into real economy cyclicals—namely Energy, Materials, and select Industrials—with GSCI commodities posting fresh monthly highs alongside sector leaders.
Key Market Narrative:
The “Great Unwind” in Financials (XLF, INSTAT -62) accelerated, while Tech (XLK) flatlined in a neutral repair phase. By contrast, Energy (XLE) and Materials (XLB) registered maximum INSTAT scores of 100, supported by broad-based accumulation across U.S., Canadian, and Latin American listings.
Geographic Observations:
Canadian inter-listed names surged in lockstep with the commodity complex (CVE, IMO, AEM), while Latin American equities displayed bullish breadth, led by Brazilian banks and utilities (ITUB, SBS). MercadoLibre (MELI) was a conspicuous regional outlier, trading down sharply despite the constructive regional tape.
Internal Divergences:
Beneath the surface, sector internals were bimodal. Energy and Industrials saw extreme outperformance in select names (VRT, FTI, DVN) while transports and software lagged. Consumer Discretionary displayed a bifurcated tape: homebuilders resilient, retail and hospitality names deeply distressed.
Tactical Conclusion:
The tape is signaling a regime of “Cyclical Exceptionalism.” Longs should focus on commodity-aligned North American and Latin American names showing persistent 1W/1M accumulation; shorts or reduces should target Financials and Discretionary names still exhibiting distribution (INTU, CMG, HIMS) without signs of stabilization. Canada and Brazil are currently the preferred geographic conduits for this flow.
Analysis of Capital Flows Between Sectors
Overview
The GICS sector landscape displays a distinct cyclical rotation today, characterized by strong breadth in “real economy” sectors versus weakness in rate-sensitive and consumer-facing groups. Energy (XLE) and Materials (XLB) are the clear standouts, both registering INSTAT scores of 100 with robust 1D and 1W gains that extend their positive 1M trends. This pro-cyclical bid is further supported by Industrials (XLI), which maintains a bullish INSTAT profile despite more moderate daily action.
Conversely, the market is unwinding positions in Financials (XLF) and Consumer Discretionary (XLY), which are today’s notable laggards with negative 1D/1W returns and deeply depressed INSTAT scores. Technology (XLK) remains in a neutral holding pattern; while its 1W performance is constructive, today’s flat-to-muted action and low INSTAT (12) suggest a pause rather than a breakdown. The overall tone is “Moderately Bullish” for cyclicals but “Mixed/Repair” for the broader index components.
Leader/Laggard Summary
Pro-risk cyclical leadership: Energy (XLE), Materials (XLB), and Utilities (XLU) are clear leaders, showing coordinated buying interest across 1D and 1W timeframes.
Defensive/Interest Rate unwind: Financials (XLF) and Consumer Discretionary (XLY) are lagging significantly, showing short-term distribution despite varying 1M backdrops.
Neutral/Repair phase: Communication Services (XLC) and Technology (XLK) are showing mixed signals, with price action decoupling from momentum scores.
Key Anomalies to Tag
Extended Leaders
Energy (XLE): Strongly Bullish, short-term extended – INSTAT 100 with very strong 1D (+2.6%) and 1W (+4.0%) moves; extending a powerful 1M trend.
Materials (XLB): Strongly Bullish, short-term extended – INSTAT 100 with solid 1D/1W alignment; confirming breakout behavior.
Utilities (XLU): Bullish extension – INSTAT 100; defensive leadership persists alongside cyclicals.
Deep Laggards
Financials (XLF): Bearish warning – INSTAT -62 with negative 1D/1W; short-term momentum has rolled over significantly.
Potential Contrarian Ideas
Consumer Discretionary (XLY): Contrarian watch – Negative 1D/1W but IN (3) remains positive relative to price; watching for stabilization.
Analysis of Capital Flows Within Sectors
Overview
Internal sector rotation is highly pronounced today. Energy is broadly bullish, with service providers like TechnipFMC (FTI) and integrated majors like Equinor (EQNR) posting INSTAT 100 readings, driven by strong 1W flows that reinforce 1M strength. Industrials show a similar bifurcation; heavy equipment and electrical components (Caterpillar, Eaton, Vertiv) are surging with maximum INSTAT scores, while transport-related names struggle.
Technology and Consumer Discretionary reveal significant stress beneath the surface. While semiconductor equipment (Lam Research, Applied Materials) remains bid, software giants like Salesforce and Intuit are seeing distribution (INSTAT -90 to -100). Similarly, in Discretionary, homebuilders (DR Horton) are resilient, but consumer services and retail (Chipotle, Caesars) are being sold aggressively, creating a “Bearish/Repair” tone for the group aggregate.
Leader/Laggard Summary
Clear Leaders: TechnipFMC (Energy), Vertiv (Industrials), and Southern Copper (Materials) exhibit “Strongly Bullish” profiles with INSTAT 100 and aligned 1D/1W strength.
Clear Laggards: Intuit (Tech), Caesars Entertainment (Discretionary), and Ready Capital (Real Estate) are in “Bearish” territory with INSTAT -100 and persistent selling pressure.
Repair Phase: Several airlines (United, Delta) show negative 1D action but constructive intermediate metrics, suggesting a tactical pullback within a repair phase.
Key Anomalies to Tag
Extended Leaders
Industrials - Vertiv Holdings (VRT): Strongly Bullish, extreme extension – INSTAT 100 with massive 1D (+24%) and 1W (+36%) moves; prone to mean reversion.
Materials - Chemours Co (CC): Short-term momentum spike – INSTAT 100, up ~9% today and ~17% this week; breakout acceleration.
Energy - Devon Energy (DVN): Bullish trend confirmation – INSTAT 100 with steady 1D/1W accumulation.
Tech - Micron (MU): Bullish extension – INSTAT 97, +9.9% 1D move extending a strong week.
Deep Laggards
Tech - Intuit (INTU): Strongly Bearish – INSTAT -100 with -5% 1D and -10% 1W; distribution intensifying.
Healthcare - Hims & Hers (HIMS): Stress signal – INSTAT -100, down -31% this week; broken chart structure.
Discretionary - Chipotle (CMG): Bearish breakdown – INSTAT -100 with consistent 1D/1W selling.
Potential Contrarian Ideas
Energy - BP PLC (BP): Contrarian watch – INSTAT 90 despite flat/mixed 1W; strong 1D (+4.2%) suggests buyers returning.
Industrials - Southwest Airlines (LUV): Tactical watch – Negative 1D/1W but IN score (50) holds support; divergence alert.
Analysis of Capital Flows in Canada
Overview
The Canadian inter-listed universe is trading with a distinctly “Risk-On” tone, heavily influenced by the commodity complex. The slice is dominated by strength in Energy and Materials, with heavyweights like Cenovus (CVE), Imperial Oil (IMO), and Agnico Eagle (AEM) all registering INSTAT 100. This buying pressure is consistent across 1D and 1W horizons, extending established 1M uptrends.
Conversely, the technology and consumer segments are dragging. CGI Inc (GIB) and Lululemon (LULU) are distinct laggards, trading with INSTAT -100 and notable 1D weakness. The banking sector is currently in a “mixed” state; while not breaking down, names like TD and RBC are seeing minor 1D pressure despite constructive longer-term backdrops.
Leader/Laggard Summary
Pro-risk cyclical leadership: Energy and Mining majors (Cenovus, Teck, Agnico Eagle) are aggressively bid.
Defensive/Growth unwind: Tech (Shopify, CGI) and Retail (Lululemon) are facing short-term liquidation.
Repair phase: Canadian Banks are drifting slightly lower (1D) but maintain neutral-to-positive intermediate scores.
Key Anomalies to Tag
Extended Leaders
Canada - Imperial Oil (IMO): Strongly Bullish – INSTAT 100, +4.3% 1D; momentum accelerating within 1M trend.
Canada - Agnico Eagle (AEM): Bullish extension – INSTAT 100, nearly +9.4% 1W; gold miners leading.
Canada - Suzano (SUZ): Note: Appears in SA slice but traded as proxy; highly extended. (Correction: focus strictly on Canada slice leaders).
Canada - Canadian Natural Res (CNQ): Bullish flow – INSTAT 100; robust 1D/1W accumulation.
Deep Laggards
Canada - CGI Inc (GIB): Bearish stress – INSTAT -100, down -6.8% today; sharp breakdown.
Canada - Lululemon (LULU): Distribution – INSTAT -100; weakness persisting over 1W timeframe.
Potential Contrarian Ideas
Canada - Bank of Montreal (BMO): Contrarian watch – Negative 1D but IN (50) and INSTAT (64) remain supportive; consolidation pattern.
Analysis of Capital Flows in Mexico and South America
Overview
Latin American equities are displaying a generally robust “Strongly Bullish” tone, particularly in Brazil and Mexico. In Mexico, airport operator PAC and telecom giant America Movil (AMX) are leaders with INSTAT 100, reflecting strong inflows that are lifting the slice average. South America is equally buoyant, led by Brazilian heavyweights in basic materials and utilities. Suzano (SUZ) and Itau Unibanco (ITUB) are standout performers with INSTAT 100, driven by powerful 1W moves.
Weakness is isolated to specific names rather than broad regional sentiment. MercadoLibre (MELI) is a notable exception, trading as a deep laggard (INSTAT -71) amidst the broader regional rally. Similarly, LATAM Airlines (LTM) is seeing profit-taking after a strong yearly run.
Leader/Laggard Summary
Pro-risk cyclical leadership: Brazilian banks, utilities, and pulp/paper (Suzano) are attracting aggressive capital flows.
Defensive/Idiosyncratic unwind: MercadoLibre is decoupling to the downside; select airlines are pausing.
Repair phase: YPF Sociedad Anonima is consolidating recent gains with stable underlying metrics.
Key Anomalies to Tag
Extended Leaders
South America - Suzano (SUZ): Strongly Bullish, extreme extension – INSTAT 100 with +13% 1D move; massive short-term momentum.
Mexico - America Movil (AMX): Bullish breakout – INSTAT 100, +4.8% 1D; extending strong 1W performance.
South America - Itau Unibanco (ITUB): Financials leadership – INSTAT 100; strong 1W accumulation (+12%).
South America - SABESP (SBS): Utility strength – INSTAT 100; consistent steady buying.
Deep Laggards
South America - MercadoLibre (MELI): Bearish divergence – INSTAT -71 with negative 1D/1W; lagging the strong regional tape.
Potential Contrarian Ideas
South America - YPF Sociedad Anonima (YPF): Contrarian watch – Flat/negative 1D/1W but INSTAT (88) remains elevated; pullback in uptrend.