The Zigmont Report (Daily Market Recap for 3/29/18)

Mike Zigmont

Mike Zigmont, author of the Zigmont Report, is a partner at New York-based Harvest Volatility Management, a hedge fund with over $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

End of the month.  So the dip-buyers couldn’t resist and they made their move on the last day of the month (and quarter).  Good for them.  I’m so happy to be able to count on their perpetual optimism/greed.

What was the news today?  Not much.  Some optimism/sentiment numbers came in strong, the Atlanta Fed bumped their Q1 GDP estimate to 2.4% from 1.8%, and weekly jobless claims hit a low that goes back to the early 70’s!

All those data points by themselves are pretty blah.  Together, they constitute a little optimism.  The bulls got a head of steam going in the morning session and the momentum traders and tape-chasers carried things further from there.

Here’s all we need to know about the US market at the moment.

  • Q1 was the first down quarter for the S&P 500 since Q3 2015
  • The S&P just printed two consecutive down months.  That hasn’t happened since Jan & Feb of ‘16
  • There’s not much news happening
  • Look at these charts


10 Year

Until we get some meaty news, the dip-buyers are going to give it the old college try.

Speaking of news….

The big item next week is nonfarm payrolls release on April 6th (189k est vs 313k prior).

Payrolls data will shape the Street’s view of the Fed’s hiking path…and that matters big time.

US equity markets are closed for Good Friday tomorrow, see you Monday,