The Zigmont Report (Recap for 5/30/19)

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.

Dicey.  The bulls returned to their computers today, although not in force.  The flow today was light at 84%.  So like yesterday, not much money was actually moving.  The S&P opened higher this morning, to the tune of about 7 handles but quickly rallied to the high of the day (+16 handles around 10:30 AM).  It looked like the dip-buyers had finally turned the tape and were about to trigger a short squeeze.

It didn’t play out that way and the bears leaned on the tape intraday.  The S&P essentially wandered down until the late afternoon.  The S&P was down 7 handles at the low.  It looked scary.  Bulls retrenched and managed to drive the S&P into positive territory and get a win for the day.

All this happened without significant news stories.

Today had some intraday price-action drama but the big-picture takeaway for us is unchanged.

We are in a news-lite environment where the market is swimming in confusion.  Investors are attempting to divine information from the most recent 5 minute run of the market.  This leads to fast, sizeable, but meaningless intraday swings.

Ignore the intraday moves, if you can.  That’s easier said than done but it’s all I have for you today.

See you tomorrow,