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 it daily shortly after the market close.
The opinions expressed below are my own
Chase that tape. A small up premarket led to a modest up open and with every tick higher, it looked and felt like other investors jumped in long. Intraday momentum higher was on display this morning as the news was pretty dull. The chatter in the morning was about the tax reform stuff happening in D.C. The process appears to be going forward so investors are getting bulled up.
The tape began to roll over when Pelosi and Schumer announced they wouldn’t meet with Trump over budget negotiations. Lord knows what that means but it dampened enthusiasm as investors worried (just a little bit) that the tax reform would be affected. Shortly after that, news spread that North Korea launched a ballistic missile. The tape sank more dramatically on that news and the S&P gave up half its gains for the day.
Don’t worry though, dip buyers jumped in after 10 minutes of weakness and we rallied consistently into the close. We printed new all-time highs in the final hour of trading and closed just off those highs.
Bulls own the markets and that’s all there is to it.
Capital market flow was elevated today at 113% so this rally can’t be dismissed. Significant money was in motion today and whether the bears like it or not, money talks.
The only question I have is how much more momentum the bulls can muster in the short run?
See you tomorrow,