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
Global news was quiet, Asian equity markets were up strongly, European equities were mixed. The US equity futures market was up small. The market opened small and calmly rallied to new highs around 10 AM.
Equities slowly faded from those intraday highs over the rest of the day and that was that. Capital flow was healthy at 110%.
Is something happening under the hood that might explain today’s action?
I don’t think so. Despite the impressive consistency of this bullish run, stocks are going to pull back every so often. Most of us (ahem *I*) would argue that the pullbacks should be deeper than 3 bips and more frequent than once every five sessions, but I guess that’s a quantitative nit-picky gripe.
In other markets, treasuries didn’t do anything. Commodities were quiet. Precious metals were a little soft. The Dollar was a little stronger. There’s no obvious message hidden in the other market movements either. Let’s just call it a slightly down day because of noise.
Anywho, now that we’ve technically printed a dip, I’ll give you three guesses what’ll happen tomorrow.
See you then,