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.
Feeling better. Investors didn’t learn much new stuff today but they felt better about things nonetheless. Maybe that lack of news is just what the doctor ordered. So many new bits of news and data have thrown investors so many curves, that a truly quiet day might be worth buying. Don’t know for sure but it’s a reasonable guess on a quiet rally day.
Capital flow today was light at 92% so obviously whatever may have motivated the active investors to buy today, it didn’t compel the usual amount of capital into motion.
I think the market is currently just about finished with the aftershock phase of trading. The big swings due to big changes are in the rearview and the big responses to the perceived overreactions are also behind us. Now we’re just gently bouncing around, waiting for the next big event to send us into motion.
Those events could be either positive or negative and most are probably going to be bolt-from-the-blue surprises. The ones that we can see in front of us are earnings season beginning in mid-month, US/China trade news (always ongoing), various macro data (ongoing), and the next FOMC meeting (Jan 30th).
We’ll see how those events play out soon enough.
See you tomorrow,