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
Quiet pullback. Today was the kind of sleepy day I was expecting as we head into year-end. Capital flow was surprisingly normal at 104% and the tape slowly wandered down after opening a few handles higher this morning. Treasury yields climbed today and the curve steepened a bit. Yawn.
The news item of the day, that didn’t matter one iota, was the passage of the tax reform bill in the House of Representatives. This was expected and the bill passed easily. The Senate votetonight
is going to be tighter. The GOP leadership claimed they had the votes weeks ago…who knows whether they do or not. The market is expecting passage in the Senate however so we shall see.We are at the final moments of the tax reform event. We’ve known about it for months…the initial speculation began with the Presidential election in 2016 and here we are at the finish line. It will either happen or not. A lot of market pundits are making the case that the buy-the-rumor phase of tax reform is over and the-sell-the-news phase is beginning.
Sounds a little too cute to me…but this market is in its own world. Maybe the obvious play is the correct play? I won’t be surprised either way.
I have no conviction in any speculation between now and year-end also. The tape jostles around and we’re all trying to back-fit explanations. The forward-looking view is opaque to me.
See youtomorrow
,-Mike
