FintekNews is pleased to launch our new feature "The Zigmont Report (Daily Market Recap)" today. We will publish this right after the market close, and each feature will appear the following morning on our M/W/F newsletter as well.

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 need to panic. Overseas markets were higher and our premarkets were higher and our equities rallied fairly strongly from the open. We hit all-time highs around 10:30 and were hovering up there until lunch. Then a strange thing happened, tech rolled over. It didn’t drop too hard but tech has been leading the market for a while. For tech to sink, without a big news item, is unusual… capital flow was very heavy today too, the flow was 148%. That’s a meaningful amount of money that decided to act today. Hmmmm.

Here’s what tech did today. Notice energy (the laggard of the year so far) was the best performer. Notice also the Chg YTD column. Today was Boxing Day for Tech & Energy.

So the *big* question is what this means. Sadly we can’t tell. The bulls still own the trend and the dip-buyers will almost certainly do their thing on Monday but…. this is the first technical weakness/hiccup I’ve seen in a long while.

The bears, those poor bears, finally see a glimmer of hope. I doubt any of them have more capital to deploy to press their bets but I’m sure they will get vocal. Valuation is their bugaboo and I agree with them on that.

I haven’t been willing to fight the tape by being short. I’m just neutral and waiting (and feeling foolish as stocks climb to the sky). That said, I think I might put on a small speculative short Monday.

It’s a nearly impossible game, timing the markets, but I feel like taking a turn just the same.

Have a great weekend. See you Monday,

-Mike

Mike Zigmont has more than 12 years experience in volatility trading, research and structuring. Previously an Equity Options Trader and Quantitative Analyst with Volaris, Credit Suisse's volatility management unit, he was responsible for risk management of OTC and listed options on $4 billion of client assets. Subsequent to joining Volaris, Mike was a Vice President with Morgan Stanley in the Structured Investments Group and OTC Hedging Desk within the Institutional Equities Division. He holds a B.A. in Engineering Sciences from Dartmouth College and studied at the University of Mainz in Germany.The opinions expressed in The Zigmont Report are his own and do not necessarily represent those of Harvest Volatility Management, LLC....