The Zigmont Report (Daily Market Recap for 6/13/17)

FintekNews is pleased to launch our new feature “The Zigmont Report (Daily Market Recap)” today.  We will publish this right after the market close, and each feature will appear the following morning on our M/W/F newsletter as well. 

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 shortly after the market close.

The opinions expressed below are my own and do not necessarily represent those of Harvest Volatility Management, LLC.

Enough was enough.  Dip-buyers apparently thought that the drop from Friday’s intraday high was tasty enough to act upon and so, they did.  The S&P opened up small, meandered down while Europe traded and then rallied slowly and consistently over the rest of the session.  News and data today was uninteresting and it looks and feels like investors were going through the motions as we wait for the FOMC decision tomorrow.  Capital flow was 103%, in line with typical activity.  Sector performance doesn’t tell us much today with materials leading and telecom lagging.  Tech (the leader for the year) came in 2nd today and energy (the laggard for the year) came in 3rd.  For whatever it’s worth, we didn’t see the usual relative performance split during today’s rally.

There’s not much else to discuss today.  The investing landscape looks the same today as it did yesterday and if the landscape is going to change materially, it’ll be due to tomorrow’s FOMC decision.  FYI, the expectation is for the Fed Funds range to be bumped up 25 basis points to 1-1.25% and for the statement and press conference to indicated that another 25 bip hike appears likely later this year.

The decision releases at 2 PM ET tomorrow and the presser is a half hour later.  That’s when the action happens.  See you then,