The Zigmont Report (Daily Market Recap for 7/24/17)

Mike Zigmont

Mike Zigmont
, author of the Zigmont Report, is a partner at New York-based Harvest Volatility Management, a hedge fund with over $10B AUM, offering volatility management solutions to its investor base worldwide.  Mike has been publishing his daily newsletter (Monday-Friday) privately for the firm’s investors and his personal contacts in the investment business
since 2008, sending shortly after the market close.

The opinions expressed below are my own and do not necessarily represent those of Harvest Volatility Management, LLC

No ado about nothing.  I’m having a tough time coming up with new ways to say boring.  Like so many other days, today was boring.  Capital flow was very light at 84% and the S&P 500 barely moved, the intraday high/low spread was about 25 basis points….that’s very low.  Something like this happens about once in every 500 sessions (about 2 years).  It’s obviously not unprecedented but it’s worth mentioning.

So much dullness on the cusp of the busiest week of the earnings season PLUS the Fed announces their next decision on Wednesday!  Maybe there’s so much that’s about to happen, everyone is essentially on the sidelines waiting to learn something new and see some data before acting?

Tomorrow will be mostly about earnings (42 S&P 500 companies will announce).  Wednesday will be mostly about the Fed (2 PM decision, no change is priced in as certainty).  The rest of the week will be about earnings again (189 S&P 500 companies announce during the whole week).

Given all the action that appears to be around the corner, we’re just going to have to see how it plays out.  The mightiest catalyst will be Alphabet’s (aka Google’s) earnings report.  They announce after today’s close, and as one of the fabled members FANG (Facebook, Amazon, Netflix, Google), they will be instrumental in shaping investor sentiment in the near term.

So what’s Google gonna do?

See you tomorrow,
Google beats numbers handily.  Stock all over the place in post-market trading, down 2% at the moment.