Core Insights - Hedge funds have net bought global stocks for the seventh consecutive week, with a significant shift in market sentiment and strategies observed [3][5][11] - The S&P 500 index is nearing its historical closing record, driven by various market forces and expectations surrounding the Federal Reserve's interest rate decisions [3][11] - Corporate buyback activities have surged, with trading volumes significantly higher than previous years, indicating companies' strategies to counter market weakness [11][12] Hedge Fund Activity - Hedge funds' total gross leverage increased by 1.5% to 286.6%, while net leverage rose by 0.4 percentage points to 81.2%, reaching the 99th percentile for the past year [5] - All major regions, except for Asian emerging markets, experienced net buying, with North America leading the gains [5] - The net buying ratio of long positions to short positions among hedge funds is 1.3 to 1, indicating a strong bullish sentiment [3][5] Market Trends - There is a notable rotation of funds from defensive sectors to cyclical stocks, with utilities down 4.83% and cyclical stocks up 5.01% [4] - Quantum computing stocks have seen a five-day increase of 14.61%, while non-profitable tech stocks rose by 9.61% [4] CTA Strategy - CTA strategy funds have shifted to a buying stance across various market conditions, with expected purchases of $29.8 billion in flat conditions and $31.2 billion in rising conditions [7][10] - The model predicts that these strategies will reach target exposure levels in the coming days [10] Corporate Buybacks and IPOs - Corporate buyback activities are at a peak, with trading volumes 80% higher than the average for the same period in 2024 and 100% higher than in 2023 [11] - In North America, new issuances and expansions reached $9.95 billion this week, totaling $390.2 billion year-to-date, indicating a favorable supply-demand balance for stock prices [12] Investor Sentiment - Retail investor sentiment has improved significantly, with the AAII sentiment survey showing a bullish percentage increase of 12.3 points to 44.3% [13] - The CNN Fear & Greed Index rose from 18 to 40, marking the highest level since late October, while Goldman Sachs' sentiment indicator has returned to neutral territory [15]