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.
Yee-ha! Bulls opened the month like gangbusters. Positive Chinese data gave bulls all the reason they needed to lift offers and rip the tape higher. International markets led the way with China up 2.6% and the rest of Asia up about 1%. Europe followed suit and climbed a percent as well. When it was the US’ turn we did our thing to the tune of 1.2%. Capital flow was about normal at 102%.
There were some weak macro numbers in the US this morning (retail sales) but they didn’t matter.
It looks like investors are playing the chart game and if you look at the chart, you feel a compelling urge to buy. Here’s the year-to-date chart.
The emotions of the market right now are giddy. Other than the chart, I don’t see the cause for the short-term ebullience.
I only feel like things are too optimistic and that investors are leaning too much to one side.
See you tomorrow. -Mike
