The Zigmont Report (Daily Market Recap for 12/13/18)

Mike Zigmont

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.

Pedestrian.  Today was the first boring day in a while.  That’s a welcome change.  News was uninteresting and the price action was pretty contained.  This is a little unusual because the ECB announced their latest decision this morning (rates unchanged and QE ends this month, as planned).  This was expected so it didn’t shake things up.  The S&P opened up about 9 handles and closed about flat.  That’s no big deal considering we’ve seen 50-80 handle moves recently.

Maybe investors are done wildly speculating and are now just waiting for the next piece of material information?

I’m going to hang my hat on that for a spell.

US advance retail sales data and industrial production plus capacity utilization data release tomorrow at 8:45 AM and 9:15 respectively.  This data will help shape the growth-is-slowing narrative.  Barring outliers, I expect the market to react very little.  The pieces on the chessboard are mostly positioned and we are essentially waiting for the Fed to move.  That happens on Wednesday.

Until then, things *should* be tame as we play the waiting game.

See you tomorrow,