It Hurts to Think

Today's action was mainly a NQ affair. Regardless of the market direction, their continues to be a play to buy the NQ over broader base averages and industrials. The relative strength view gives what appears to be an opportunity to buy an index some 50% off it's 2000 highs. Whether the players are right does not matter as much as what it says about the appetite of managers looking for investments they might be able to sleep with comfortably. Besides large bets by funds in treasuries for both actual hedging of bad debt trades as well as directional plays looking for Fed accommodation, their seems to be doubt as to the the rallying capabilities of the stock market. It may be that the overall long play in treasuries would suit the hedge community through the balance of the year since it would entail much less thought. That's if it works. Thinking has been a problem for them.