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

Flatish. Boy, today was almost a copy of last Friday (in terms of tape movement). There wasn’t much in the way of significant news but investors were a little-bit on edge so headline watching and knee-jerk reactions were part of the mix, especially in the morning. Later in the day the news broke that Bannon was out of the White House. Surprisingly, that didn’t move the tape. That’s a big deal for politics and the plain-old news outlets but it just didn’t matter for US equities. Capital flow was 108% today. That’s an elevated number but today was option expiration (for the monthlies), so the flow would normally be 120-130% as a result... So there wasn’t much relative activity today. Anyway….

Here's my big takeaway for today. The world stabilized from yesterday. There wasn’t a big development to alter the investing landscape so the dip-buyers got their chance to breathe. They are going to spend the weekend gaining confidence (as long as something new & major doesn’t happen). I think

Monday

delivers yet another rally and the mother-of-all-pattern-based-trading resumes .

Personally I’m frightened to participate. I’ve been leery of valuations for so long that I’m gun-shy to even rent stocks for a rally. Shame on me. I think there’s profit to be made riding the bull further…it’s just a question of jumping off before it all goes badly south.

I happen to think that it won’t go south until we get a recession, a crappy earnings season, or an aggressive Fed action, or a war….. presumably the first three can’t happen for a while… and war, that’s a whole different can of worms and being fearful of it (right now) just doesn’t make sense.

So I should just take the plunge and get long with the rest of the dip-buyers. If you can’t beat ‘em, join ‘em, right? I forget where I heard that once.

Have a great weekend, see you

Monday

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PROTECT YOUR EYES DURING THE ECLIPSE

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-Mike