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 walk-back. Yellen didn’t say anything to prompt investors to undo yesterday’s rally and data today was a big yawn. US equities continued to rally with light capital flow behind it (86%). The S&P 500 is about 5 handles from a new all-time high and it looks like the bulls have done it again. Buy the dip. Earnings

tomorrow

from four major financials (PNC, JPM, C, WFC) will give us our first sample of data that can be broadly extrapolated. Given that all four of those stocks are up today and that financials were the best performing sector today… I’d say the fix is in.

Maybe those four stocks don’t all beat but I they won’t all disappoint either. It’s going to take a broad batch of earnings and revenue disappointments to crack the bullish sentiment. That’s a long shot and I think it’s time for bears to lick their wounds and bide their time.

I don’t have the guts to get long because I can’t justify these valuations but short is definitely wrong right now. It’s a bullish soup out there and nothing foreseeable is going to spoil it anytime soon.

See you

tomorrow

,

-Mike