Mike Zigmont, author of the Zigmont Report, is a partner at New York-based Harvest Volatility Management, a hedge fund with over $12B 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.
Back from the dead. A lot of today was like the last two trading sessions. Premarket futures were higher but bears responded with pressure. After the open, the tape weakened into the close of Europe’s markets. It looked like the same old same old. Also the same was that news was lacking. There were no significant headlines that altered the investing landscape. There’s a growing fear of a global slowdown but that’s more a function of the bearish action lately and the general concerns over China’s economy.
Anyway, the point is that today looked and felt a lot like the other days this week. The difference was that the bulls bounced the tape and built on their intraday momentum. The sentiment change of the day was very noticeable as the S&P went from off 30 handles at the lows to up 34 handles at the highs.
The big question for us is whether this *sentiment* shift can stick around for a session or two. How many points can the bulls recover with the winds blowing in their direction again?
There’s not much more to say. The anticipated news and data channel is quiet. We’re in psychological territory here. It’s the emotion of the crowd that’s causing the moves.
Since the market has been down for a while and topped out above 2800 recently, it only makes sense for the bulls to make a run at that number again. We’re in charts and levels and feelings land.
I don’t think the bulls will get all the way back to 2815 but I think they’re just getting started with their attempt.
See you tomorrow,