The Zigmont Report (Recap for 3/11/19)

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 and do not necessarily represent those of Harvest Volatility Management, LLC.

Super dip-buying.  After a full week of down sessions, the dip-buyers went to work and steamrolled the tape.  Overseas markets were up modestly and the S&P opened up 7-ish handles.  From there, the climb was steady and consistent.  By lunch the S&P was up over 30 handles.  We climbed just a touch further over the rest of the session.  This happened on quite light flow (85%).  Tech led the way today and every sector was higher.  The headlines weren’t that interesting although the financial press is touting the merger announcement of Nvidia as a catalyst.

Today’s rally seems technical to me.  I don’t see strong fundamental catalysts in the news.  It looks like intraday momentum players are back at it and nobody was standing in the way.  The bears got the heck out of dodge this morning and it looks like the bulls want to test 2800 again.

I’m sure there will be renewed enthusiasm from the dip-buyers after today.  They can probably break through 2800.  I don’t think we can stay up there for very long but it looks like the Jan & Feb investor sentiment has bounced right back.  Quiet news is fuel for the bulls.  Some kind of negative news, when it breaks will smack the tape back down of course but bulls don’t want to hear it.  They are storming right back into the market and they have the muscle.

I think the bulls are on thin ice but until a meaty news item breaks and rattles the market, the longs are acting as if everything is coming up roses.  And no bears have the stomach to get in the way (not that I blame them).

See you tomorrow,