The Zigmont Report (Recap for 3/18/19)

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.

More of the same.  I hope you haven’t gotten tired of the following because it happened again today.

  • Little news
  • Light volume (89% capital flow)
  • Stocks rally

I’m tired of it.

We are experiencing the quintessential escalator ride higher.  The conventional wisdom is that way lower is via elevator.  Nobody (except me) is worried about that though and most bulls would love the opportunity to buy at lower levels.

At least that’s what they say now.  Whether they freeze or panic if the S&P is actually 5% lower remains to be seen.  In December, the permabulls bought the shallow dips reliably, before the market was truly worried.  Once the market was off 3-plus percent, they were on the sidelines.

If I had to predict, I would expect similar behavior the next time around, whenever that might be.

Meanwhile, the news vacuum continues and it continues to favor the bulls.

When that environment changes, the markets will change.  Until then, get used to more of the same.

See you tomorrow.