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 and do not necessarily represent those of Harvest Volatility Management, LLC.
Another up day. Quiet news and uninteresting data was the theme of the day. Flow was light again also, printing 83% today. A lot of bears are bemoaning the fact that the market has rallied so far on such little volume but that’s not terribly significant. The price is the price…. Maybe the low volumes on the upswing suggest little support if the tape turns but that’s not much to hang your hat on.
Anyway, the point I’m making is that we’re dealing with light flows in the markets and a dearth of news. Because of where we’ve been, and the 10-year programming of investors to buy-the-dip, it’s not surprising to see equities lift slowly. The fever broke a while ago and investors are feeling better and better as we go forward without a negative catalyst.
Everything is subject of course. A big bad news item or an amazingly positive one will move this tape 2% in a heartbeat.
I wonder whether something like that is around the corner or not.
See you tomorrow.