The move was led by the NQ8 and the Tech stocks in general.
The small caps are also moving higher, but are not attracting strong money.
Index investors followed the same move.
The US$ bounced as the tax package will include repatriation of cash from abroad.
The Biotech sector was the one of the most active sectors, following GILD's acquisition of a small biotech company. This sparked speculation of a coming acquisitions spree.
I feel strange that the small caps are not overperforming as growth oriented narratives tend to push money in the small caps. It might be related to the Cash repatriation deal that could help the larger companies.
Conclusions:
Today is the last day of August. The day should be strong again, but I believe that we will enter into exhaustion buying. I expect more negative narrative to take the web over in the coming days. I still plan to short the small caps when the IWM/SPY ratio will reach the top of its envelope.
