The Zigmont Report (Daily Market Recap for 8/9/18)

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.

Quintessential summer.  Today is what we refer to when we talk about the summer doldrums.  Capital flow was 87% and the high/low range of the day was 0.37%, which is something we would expect to occur about once every 29 sessions.  That’s quiet.  It’s not absurdly quiet.  It’s just something that happens when the news is light and it’s late in the summer.

Oh, before I forget, the July PPI (0.0% vs 0.2% est & 0.3% prior) came out this morning.  The data shows that inflation isn’t an immediate worry and so the markets didn’t react to the number.

July CPI ex food & energy (0.2% est vs 0.2% prior) releases tomorrow.  I expect the same kind of non-reaction from markets when we learn the data.

There’s no need to make a mountain out of a molehill.  Today was a going-through-the-motions day.

See you tomorrow,