The Zigmont Report (Daily Market Recap for 1/24/19)

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 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.

A lot of nothing.  In a little bit of a throwback to the summer, the market did very little and the news was uneventful.  The ECB made no changes but made cautious noises.  Whatever the heck that might mean, the consensus thinking is that the ECB may move towards more accommodation if things soften further.  Reading the tea leaves that way is a stretch if you ask me and the markets didn’t really react so it sounds like a narrative without much oompf behind it.  That was the major economic story of the day.  The rest of the day was dedicated to the government shutdown drama.

Markets haven’t really concerned themselves with the actual shutdown but it’s the story that’s grabbing the headlines at the moment.

Oh, there was another US/China trade item today.  Wilbur Ross, US Commerce Secretary, stated that the US and China were “miles and miles from getting a resolution.”  That’s cost the S&P 5-6 handles in the moment and was recovered within 30 minutes.  Whether you & I think that’s a meaty tidbit from Ross or not, the market didn’t really care.

Anyway, the tape wandered around but never went to high or low and we finished about flat again.

Bulls and bears remain in a stalemate and I suspect they are reserving some energy/capital for the next big catalyst and push.

Ya never know what will spur investors into motion but next week these look like the candidates.

1/29 Apple earnings (after close)

1/30 Jan ADP labor data (before open)

1/30 *FOMC decision* (2 PM)

                Press conference (2:30 PM)

1/30 Facebook earnings (after close)

1/31 Amazon earnings (after close)

Until then, I’m guessing things will remain quiet.

See you tomorrow.