Current markets mood is harder to indentify as we see the same cashflow like we`ve seen with the first vaccine-wave this year.
Comparing RUSSELL 2000 and SPX500 it looks like we see a flow out of big companies into the small-cap-section.
This is very weird as the small businesses were those who suffered the most during the COVID-Lockdown in the USA. Does the market expect a BOOM of these companies with the upcoming vaccine?
There is one fact:
More than 50% of these companies listed in RUSSELL are not making any profit 👉 They are the "zombies" of the market who are only able to survive due to financial injections by the central bank.
These odd moves are forcing me to trade a bit less as I don`t think that institutional traders are willing to buy stocks of companies that only just able to buoy up.
Sell off coming soon?
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Peace and good trades Irasor
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