INSTAT B US Markets Daily Pulse Report,, including Canadian & Latin American companies traded today on NYSE/Nasdaq, February 13, 2026
Defensive Rotation Intensifies as Capital Seeks Safety in Utilities, Staples, and Hard Assets
Executive Summary
Market Character: The underlying tone of the US market is one of caution and “capital hiding,” not broad-based optimism. While sector breadth appears constructive, the leadership is decisively defensive. Utilities and Consumer Staples are attracting the most consistent inflows, acting as safe havens. This rotation away from risk is further evidenced by the lagging performance of high-beta sectors like Technology and Communications, which remain structurally weak despite occasional one-day bounces.
Capital Flow Dynamics:
Defensive & Yield-Driven Flows: Capital is crowding into traditional safe havens. Utilities (XLU) show extreme bullish extension (INSTAT 100) and REITs are seeing aggressive inflows, validating a strong yield-chasing narrative.
Hard Asset Rotation: Energy (XLE) and Materials are showing resilience, aligning with a rotation into hard assets as an inflation hedge, diverging positively from broader market weakness.
Growth & Cyclical Laggards: Technology (XLK) and Financials (XLF) are the primary sources of funds, exhibiting deep-laggard characteristics (INSTAT -62) and ongoing distribution. Software and mega-cap services remain particularly depressed.
International & Regional Highlights:
Canada (Resource Leadership): The Canadian slice is driven almost exclusively by a “hard asset” trade. Gold miners (AEM, WPM) and energy producers (IMO, SU) are dominant leaders, while non-resource segments like Telecom (TU) lag, creating a concentrated, commodity-driven market.
Mexico (Broad Strength): Mexico exhibits robust, broad-based strength as a high-beta defensive proxy, with leadership in infrastructure (ASR), Telecom (AMX), and Energy (VST).
South America (Mixed/Repair): The region is more mixed, pausing after recent moves. Strength is concentrated in commodities like Pulp & Paper (SUZ), while large-cap weights like MercadoLibre (MELI) act as a drag, preventing broader bullishness.
Key Anomalies & Extended Moves:
Parabolic Extension: NRG Energy (NRG) shows extreme short-term velocity (+12.41% 1W), and Vista Energy (VST) exhibits aggressive momentum, both warranting caution for exhaustion.
Deep Laggards: Intuit (INTU) and Pinterest (PINS) are experiencing severe breakdowns and liquidation, needing significant time to base.
Relative Strength in Weak Sectors: Within lagging sectors like Financials, defensive insurers like Allstate (ALL) are showing relative strength, bucking the trend of weak banks and asset managers.
Analysis of Capital Flows Between Sectors
Overview
The GICS sector landscape today reflects a classic “capital hiding” environment rather than broad-based bullishness. While the headline breadth appears constructive with a 1-Week mean return of +0.93% across sectors, the leadership is decisively defensive. Utilities (INSTAT 85.3) and Consumer Staples (INSTAT 47.0) are attracting the most consistent inflows, acting as safe havens amidst broader market volatility . This “defensive unwind” in risk assets is further evidenced by the lagging performance of high-beta sectors like Technology and Communications, which, despite some 1-Day bounces, remain structurally weaker on a 1-Week basis compared to the defensive core.
Dispersion is notable between the “Old Economy” and “New Economy.” Energy (INSTAT 69.3) and Materials (INSTAT 32.5) are showing resilience, aligning with a rotation into hard assets, whereas Financials (INSTAT -26.9) and Communications (INSTAT -14.0) are struggling to gain traction . The overall tone is Moderately Bullish but qualified: it is a defensive rotation where capital is seeking safety and yield (Utilities, Real Estate) rather than chasing growth, signaling caution under the surface of the indices.
Leader/Laggard Summary
Defensive Leadership (Capital Hiding): Utilities and Consumer Staples are the clear leaders. Investors are crowding into yield/safety, driving INSTAT scores to extreme highs (Utilities ~85) even as the broader tape wobbles.
Cyclical Resilience (Resource Rotation): Energy and Materials are outperforming, showing independent strength likely tied to commodity complex firmness rather than general equity beta.
Growth/Beta Laggards: Communications and Financials are the primary sources of funds, showing negative mean INSTAT scores and soft 1-Week returns, indicating ongoing distribution or lack of conviction in cyclical growth.
Key Anomalies
Extended Leader: Utilities (XLU) – Strongly Bullish, short-term extended. INSTAT 100 with a +7.27% 1W move; extreme defensive crowding suggests potential for mean reversion if risk appetite returns .
Extended Leader: Energy (XLE) – Bullish extension. INSTAT 88 with steady flows; diverging positively from the broader S&P 500 weakness .
Deep Laggard: Technology (XLK) – Bearish/Repair. INSTAT -62 despite a 1-Day bounce; the 1-Week trend (-1.11%) remains negative, indicating today’s move is likely short-covering rather than a trend change .
Deep Laggard: Financials (XLF) – Distribution. INSTAT -62 and -4.81% 1W; significant relative weakness compared to the defensive peers .
Analysis of Capital Flows Within Sectors
Overview
Inside the sectors, the “safety first” theme continues. In Utilities, breadth is nearly unanimous, with names like NRG and EIX posting massive short-term extensions (INSTAT 100), confirming the sector-level panic buying . Energy shows similar robustness but is more concentrated in midstream and production leaders like KMI and OVV, while services remain mixed. Technology and Communications show fractured internals; while semiconductor equipment (NBIS, AMAT) is staging a sharp 1-Day relief rally, the software and mega-cap services layer (MSFT, INTU, GOOGL proxies) remains deeply depressed with INSTAT scores near -100, dragging down the aggregate .
Financials and Consumer Discretionary are exhibiting “Repair Phase” characteristics in isolation. While the sector averages are poor, specific pockets like Insurance (ALL) or select retail (FIVE, AZO) are bucking the trend with high INSTAT scores. However, the “tail” of these sectors—regional banks and speculative growth—remains heavy. Real Estate mirrors Utilities with high INSTAT scores in REITs (OHI, KIM), further validating the yield-chasing narrative across the board .
Leader/Laggard Summary
Clear Leaders (Defensive/Yield): Utilities (NRG, EIX) and REITs (OHI, KIM) are seeing aggressive inflows. This is “panic buying” in slow-moving assets.
Clear Leaders (Resources): Energy Midstream (KMI, WMB) and Materials (CRH, VMC) are bid, showing pro-cyclical inflation protection.
Clear Laggards (Growth/Tech): Software (INTU, MSFT) and Social Media/Services (PINS, TTD) are sources of funds, with deeply negative 1W returns and washed-out INSTAT scores.
Repair Phase Candidates: Select Tech Hardware (ADI, TXN) showing 1-Day strength and stabilizing IN scores after prior weakness .
Key Anomalies
Energy: KMI (Kinder Morgan) – Strongly Bullish/Extended. INSTAT 100, +5.97% 1W; breakout behavior in midstream .
Utilities: NRG (NRG Energy) – Parabolic Extension. INSTAT 100, +12.41% 1W; extreme short-term velocity requires caution .
Materials: CRH (CRH Plc) – Strong Leader. INSTAT 100; construction materials decoupling from broader industrial weakness .
Technology: NBIS (Nebius Group) – Volatile Extension. INSTAT 100, +13.84% 1W; massive 1-Day squeeze (+9.24%) likely short-term exhaustion .
Technology: INTU (Intuit) – Deep Laggard. INSTAT -99, -10.03% 1W; breakdown in software persisted through the week .
Comm Services: PINS (Pinterest) – Crash/Liquidation. INSTAT -92, -21.38% 1W; severe 1-Day air pocket (-16.88%) needs time to base .
Financials: ALL (Allstate) – Relative Strength. INSTAT 100; defensive insurer holding up while banks/asset managers (BX, KKR) lag .
Analysis of Capital Flows in Canada
Overview
Canadian equities trading in the US are displaying distinct Resource Leadership. The aggregate tone is Strongly Bullish (INSTAT 42.9), driven almost entirely by the mining and energy complex. Precious metals (AEM, WPM, FNV) are dominating the leaderboard with INSTAT scores of 100 and powerful 1-Week trends, correlating with the defensive bid seen in US Utilities. Energy producers (IMO, SU, CNQ) are also strong, reinforcing the “hard asset” safety trade .
Conversely, the non-resource segments of the Canadian market, specifically Telecom (TU, RCI) and Tech/Services (GIB, WCN), are acting as laggards or merely drifting. The flow is highly concentrated: sell “paper” growth, buy “hard” rocks and barrels. This divergence paints a picture of a market supported by commodities rather than broad economic optimism .
Leader/Laggard Summary
Resource Bulls (Safety/Inflation): Gold miners (AEM, WPM) and heavy oil (IMO, SU) are the engines of the Canadian slice today.
Defensive Laggards: Canadian Telecoms (TU) and Services (WCN) are failing to participate in the broader defensive rotation seen in the US, acting as relative sources of funds.
Key Anomalies
Canada: AEM (Agnico Eagle) – Strongly Bullish/Extended. INSTAT 100, +10.20% 1W; gold miner acting as a primary safe haven .
Canada: WPM (Wheaton Precious Metals) – Trend Leader. INSTAT 100, +7.30% 1W; consistent accumulation alongside the metal .
Canada: IMO (Imperial Oil) – Energy Strength. INSTAT 100, +6.28% 1W; breaking out with the broader energy complex .
Canada: TU (Telus) – Bearish Drift. INSTAT -79, -4.60% 1W; negative divergence from the strong US Utilities/Telecom theme .
Canada: GIB (CGI Inc) – Tech Laggard. INSTAT -81, -9.91% 1W; IT services weakness mirroring the US software slump .
Analysis of Capital Flows in Mexico and South America
Overview
Mexico (Slice 14) is exhibiting robust strength (Mean INSTAT 66.4), behaving as a high-beta defensive proxy. Leadership is found in infrastructure (ASR) and staples (FMX), along with Telecom (AMX), all boasting INSTAT 100 scores. This aligns with the “defensive/value” rotation globally. VST (Vista Energy) provides an energy kicker, showing extreme extension (+14.59% 1W) .
South America (Slice 15) is more Mixed/Repair. While the 1-Week mean return is positive (+0.81%), the 1-Day action was negative (-1.27%), suggesting a pause or profit-taking. Leadership here is thinner, concentrated in Pulp/Paper (SUZ) and select Utilities (SBS). However, the consumer/fintech giant MELI is a significant weight, trading with a weak INSTAT (-71), preventing broader regional bullishness. The region looks to be in a “Repair Phase” where buyers are stepping in selectively after volatility, but conviction is lower than in Mexico .
Leader/Laggard Summary
Mexico Leaders (Broad Strength): Airports (ASR), Telecom (AMX), and Energy (VST) are all firing, showing broad-based inflows into the country fund proxies.
South America Mixed: Pulp & Paper (SUZ) is a standout winner (commodity link), while eCommerce/Fintech (MELI) remains a drag on the region.
Key Anomalies
Mexico: VST (Vista Energy) – Parabolic. INSTAT 81, +14.59% 1W; aggressive momentum needs monitoring for exhaustion .
Mexico: AMX (America Movil) – Defensive Leader. INSTAT 100, +10.84% 1W; strong inflows into defensive telecom .
South America: SUZ (Suzano) – Commodity Bull. INSTAT 100, +15.50% 1W; massive move in pulp/paper, likely squeezing higher .
South America: MELI (MercadoLibre) – Laggard. INSTAT -71, flat 1W; unable to join the regional rally, remaining a source of funds .
South America: GGB (Gerdau) – Weakness. INSTAT -17; steel producer failing to catch the materials bid seen elsewhere .
“Repair Phase” Explained
In the context of the INSTAT capital flow reports, a “Repair Phase” is a transitional market condition that occurs immediately following a significant drawdown or structural breakdown.
It represents the period where the “bleeding stops”—selling pressure exhausts itself, and an asset begins to stabilize—but has not yet established a confirmed new uptrend.
Key Characteristics
Price Action Stabilization: The asset stops making lower lows and begins to trade sideways or drift slightly higher. It is effectively trying to build a “floor” or base after a sharp decline.
Technical Reclamation: The price attempts to reclaim short-term moving averages (such as the 10-day or 20-day EMA) that were lost during the sell-off.
Internal Divergence (INSTAT context): In my reporting framework, a Repair Phase is often flagged when price is still flat or slightly negative, but internal scores (IN/INSTAT) begin to rise off depressed levels (e.g., moving from -100 toward -50). This indicates that breadth is improving and aggressive distribution has ceased, even if the headline price hasn’t surged yet.
Psychology: It marks the shift from “Panic/Liquidation” to “Tentative Holding/Accumulation.” Investors stop selling into strength and start holding positions, reducing volatility.
Distinction from “Recovery” or “Bullish Trend”
Repair: The chart is “fixing” the damage. Resistance levels overhead (supply) are still formidable. The goal is stability.
Recovery/Trend: The chart has fixed the damage and is now making higher highs with momentum. The goal is appreciation.
Example in the INSTAT B Reporting
If a stock drops 15% in a month (Bearish), then spends the next week trading flat with low volatility, it has entered a Repair Phase. It is no longer “crashing,” but it is not yet “rallying.”
(Note: In options trading, “Stock Repair” refers specifically to a ratio spread strategy used to lower the breakeven price of a losing position, but in my narrative reports, it strictly refers to the technical stabilization described above.)