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

Unfazed. The admission by GOP leaders that their repeal-and-replace plan was dead gave bears a little hope and knocked down US equity futures in the premarket. Over the course of the session, investors shook that off and slowly pushed the tape higher. Like so many other headlines, investors don’t really care. There’s a bull market going on and that’s all there is too it. Political issues are now trivial as far as equities are concerned. Widespread tax reform is probably dead but it doesn’t matter. Who knows what’s in store with respect to healthcare legislation/changes but it doesn’t matter. Infrastructure focus is probably dead but it doesn’t matter.

The earnings are growing. The Fed isn’t dropping a hammer. The momentum is higher.

That’s all we need to know. Whether you like it or not is immaterial.

When it comes to earnings, the beats are coming and the few disappointments are contained. The growth is good (we’ll do a dive later in the week) and technology has resumed leading the market to new highs.

We said this when the market was fumbling around a few weeks ago and it remains true now:

Only tech can deliver the growth to drive the market higher. Netflix delivered and the rest of FANG is expected to do the same. The whole season feels in the bag even though we’ve just begun.

The bulls have won and they will keep winning. It looks like we have to wait for some future earnings season for stocks to disappoint before the bears will get their turn at the victory podium.

If there’s no fundamental failure, there can be no meaningful bear stretch. That’s the weather forecast.

See you

tomorrow

,

-Mike