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 it daily shortly after the market close.
The opinions expressed below are my own
Bulls get what they want. The S&P 500 printed 2500 at the close and now that milestone is behind us. Today was another very quiet day despite the following:
- Option expiration (capital flow was 147% today, a little heavy for an expiration Friday)
- North Korea shot another missile over Japan last night
- A terrorist attack occurred in the London subway today
US equities started slightly lower and clawed their way higher over the course of the day, we ended up with a small gain and a record high.
What we have here, as far as I can tell, is simply continuation:
The dip-buyers continue to dip-buy and they view every North Korean incident as a lick-your-chops opportunity.
The trend-followers continue chasing the tape higher. The minute-by-minute trends were up today and the day-by-day trends are up as well. If you trade based on charts, long is the only play to make lately.
Nothing else to say at this point. The tone of the market is calm, confident, and bullish. Nothing is going to change that except a bolt from the blue.
FOMC decision comes Wednesday. No rate changes expected but balance sheet reduction is anticipated.
That’s not going to upset the market applecart.
Have a great weekend, see you Monday,