The Zigmont Report (Daily Market Recap for 9/12/18

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.

Still quiet.  Florence continues to dominate the news, financial included.  The storm is looking like it’s going to be much worse than yesterday’s guesstimates.  Markets still aren’t reacting.  The S&P 500 insurance index fell 40 bips today.  If investors were worried about Florence’s financial impact, those stocks would feel it first and feel it most.  So the major news event for the country is a non-event for the markets…. Where does that leave us?

In a holding pattern.

US equities wandered around over the day and didn’t go anywhere.  Flow was surprisingly elevated at 105%.  This may be because of the end of Rosh Hashanah and a return of all investors to the markets.  The major data points of the day were August PPI numbers that were below expectations across the board.  No need to worry about inflation in the short run apparently.  Of course CPI releases tomorrow so while those numbers *should* be in line, they could always do something wacky and shake up the markets.

The bottom line of the moment is simply that the US equity market isn’t in a mood to go anywhere.

Given all the people about to be evacuating/dealing with Florence, I think capital flow will dip and the tape will remain quiet and essentially directionless for the remainder of the week.

We shall see soon enough.
See you tomorrow,