The Zigmont Report (Daily Market Recap for 8/23/17)

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 shortly after the market close.

The opinions expressed below are my own

1 step back.  US equities were quiet again today with capital flow printing at 78% of the 90 day average.  The tape pulled back a handful of points and it looks and feels like a run-of-the-mill reaction to a large rally.

We’re approaching the final week of August trading, which is usually slow and quiet.  Given the slowness and quiet of 2017, this summer finale should be placid.  Maybe September kicks off a resurgence in volatility and/or a directional trend but that’s more speculation than expectation.

Looking ahead for significant catalysts here’s what might agitate markets

  • August ADP 8/30
  • August NFP 9/1
  • Bank of Canada decision 9/6
  • ECB decision 9/7
  • BOE decision 9/14
  • SNB decision 9/14
  • Fed decision 9/20

None of the central bank actions are likely to be surprising FYI.  There are a bunch of economic releases along the way too but since we haven’t had much turmoil, it’s unlikely any of the indicators will show a material change.

So while September is back-to-school, back-to-work, back-to-markets, it just doesn’t look like September is going to deliver anything different than prior months.

All this tranquility.  I don’t know when it will end but when it does it’s going to feel like the end of the world.  We’re all so accustomed to trivial changes.

See you tomorrow