The Zigmont Report (Daily Market Recap for 11/1/17)

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

Off to the races.  The S&P jumped more than 10 handles higher this morning.  This was in sympathy with strong equity markets overseas.  ADP labor data (235k vs 200k est & 110k prior revised from 135k) was nice and strong.  Additionally, the Atlanta Fed bumped their Q4 GDP estimate this morning to 4.5% from 2.9%.  The Fed didn’t do anything surprising today but it sure looks like the Fed-hike path will continue as advertised.  December hike probabilities from the Fed funds futures market are now up to 88%.  Capital flow was robust at 120%.

While the S&P hit an all-time intraday high, we didn’t close at the all-time high.  That’s not very significant but it’s a little bit interesting to note that the strong rally of the morning faded during the session.  Maybe the bull is tired?

There’s little to discuss today.  It’s a new month but the old bull continues to run.  The sentiment of the market is unchanged despite all of the data today.

Tomorrow should be quiet although maybe the Bank of England does something interesting.  They announce their latest policy at 8 AM ET and a 25 bps hike is anticipated.

Other than that, Friday’s nonfarm payrolls is the next catalyst on the horizon.

See you tomorrow,