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
Back to what works. That means bulls win and tech leads. That’s what happened today. News was un-newsworthy (again) and capital flow was quite light at 83%. It was a typical quiet summer trading session and since US equities are in a dip, the bulls are trying to climb out.
In the absence of a catalyst, it seems equities have calmed down again. We’re about to get some important info this week though so maybe things wake up. Here are the potential sources of volatility this week.
- Tomorrow
- PEP earnings announce pre-market
- Wednesday
- Bank of Canada rate decision (25 bps hike expected)
- Fed Chair Yellen testifies before US House Financial Services Committee (semi-annual testimony)
- Fed Beige Book (regional anecdotal economic reports)
- Thursday
- DAL earnings announce pre-market
- US June PPI data
- Fed Chair Yellen testifies before Senate Banking Panel (semi-annual testimony)
- Friday
- PNC, JPM, C, WFC earnings announce pre-market
- US June CPI data
- US June Retail Sales data
There’s a fair amount of info pending and we’ll have much to digest. It remains to be seen whether all this info rattles the tape or not. Investor sentiment has been on bullish rails for a long time. Since November, it’s been momentarily shaken but never altered. That means it’ll probably take quite a surprise this week to force a new narrative into markets.
By definition, that is a longshot.
Whether it is a 2:1 shot or a 50:1 shot is the unanswerable question. Bears say the former. Bulls say the latter.
What’s not a question is whether markets are fairly confident that smooth sailing will continue. They are.
See youtomorrow
,-Mike
