even defensive sectors attracted money!!
XLE/XLF experienced a strong oversold bounce continuation.
As can be seen below, the sectors that had been losing the most on the past 20 days attracted the most money in the past two days (Shorts covering, especially in energy related sectors)
Non-SP500 stocks also attract money, pushing the IWM/SPY ratio higher within the envelope. This indicates hope for a coming tax deal.
On exchange rates, both the US$/Euro continued their recent move (together with gold). This is also linked to the coming tax deal.
Conclusions:
I'll do nothing for now. There is nothing cheap to buy and shorting is still not advisable in the current market.
