Looking Clever

Market players are trying to figure how to drive trades into clever positions given all the incentives the injections of liquidity are providing. Once traders figure out what they can lean on strategically, they will pounce on a consensus trade and do it until it is over done. Never has there been so much cash plowed into stabilizing world assets and it is hard to believe there are not selective prizes being totally ignored by fear. The old trading floor adage of buying the first thing that makes new session highs worked yesterday for big stocks like GE which made early session lows and may be the signal of larger pricing being executed. Having said that, markets will have to dodge liquidation waves caused by fund redemption action.