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 and
do not necessarily represent those of Harvest Volatility Management, LLC.
Sleeping into month-end. Tomorrow we should get some news out of the G20 and maybe there will be some month-end flows and rebalancings to move equities but for today, we’re still lazily going through the motions. The S&P opened up almost 10 points and essentially stayed there for the bulk of the day. Why did the bulls push the tape up today? It’s unclear because meaningful news was nonexistent.
Maybe it’s because the S&P dropped in the four prior sessions and the dip-buyers finally acted? Capital flow was quite light at 85% so whoever was active today was playing small-ball.
Tomorrow is month and quarter end. It’s been a helluva month for the bulls. It feels like both the longs and the shorts just want to get on to July and see what’s in store. I don’t expect much action as a result. This week has been an investor stay-cation and I don’t think it’ll end yet.
Also, even though G20 headlines will begin emerging tomorrow, it is unlikely any substantive deals or breakthroughs result. It is highly likely that both the US & China reiterate that they will keep talking and that they will something something going forward [insert huge eye roll by me here] and they’re 90% of the way to a deal and hopefully they can agree to something in the future and something something [more eye rolling plus yawn].