“The privates and lieutenants always lead the colonels and generals and always in both directions,” Sheff said. “This could be a very key confirmation that we are past the eye of the storm.”
Nevertheless, BofAML’s chief investment strategist, Michael Hartnett, cautions that the robust flows into small-caps may be “ETF creation for new shorts,” which would suggest that traders are buying into an area that they would bet against.
iShares Russell 2000 ETF
For more information on small-capitalization stocks, visit our small-cap category.
Max Chen contributed to this article.