The Zigmont Report (Daily Market Recap for 12/21/17)

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

FYI, I will be out of the office starting tonight and returning on the last trading day of the year, Dec 29th.  No recaps until next Friday!  See you in a week.

Slow day, up day.  Today was very much in keeping with the latter half of the year: news was dull, trading was light, equities rose.  Our premarkets were higher this morning and that inspired a bullish session.  What’s the reason?  It’s unclear but get this…. I’ve seen multiple headlines that it was….

Tax reform!

I said it before and I’ll say it again.  If markets need months to price in something like this, we have seriously inefficient markets.  To think that markets are still pricing in this event the day *after* it happened is silliness.

I won’t get too upset though.  It was a slow day and the press needs to point to something to explain the rally so what do they do?  They ride the horse that brought them here.

It wouldn’t surprise me that on slow up days for the next month, tax reform gets the nod as the ‘reason’ for the rally.  No biggie, just silly.

Capital flow today was light at 96%.  Energy led and rallied 2.1%!  Utilities lagged and fell 1.2%.  That’s all I have to say about that.

Have a great week, Merry Christmas,