Sentiment has shifted away from penny stocks and cyclical stocks

Since December, sentiment towards small-cap stocks has been rising (NYSEARCA:IWM“Cyclical stocks have weakened and lagged,” said Stephen J. DeSanctis, US mid-cap strategist at Jefferies.

According to the Jefferies memo, small businesses (NYSEARCA:IWM) has witnessed external inflows of $8 billion since the beginning of December and