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

A real(ish) dip. Equity markets were a bit soft this morning and the S&P opened down around 12 handles. There was no smoking gun for the weakness but Asia and Europe were weak so the soft morning looks mostly like intermarket sympathy. Later in the day, negative news came out of D.C. that the tax reform was changing for the worse - as far as equities are concerned. The bears gained a little momentum and the S&P was off more than 25 handles at the lows of the day, around

12:30 PM.

The dip-buyers did what they do and they repaired more than half the damage. Capital flow was heavy at 122% and it all went as per the usual. The dip came. It was shallow by historical standards but large by 2017 ones. The bulls turned the tape but couldn’t completely undo the drop. Now we’re on to the last day of the week.

How strongly conditioned is the market to chase the tape into new highs?

Very strongly conditioned.

Maybe a dose of negative news will interrupt the usual dynamic. If

tomorrow

is quiet, I think you have to give the bulls the advantage. How aggressive can/will they be?

We’ll find out.

-Mike