And geo political risks took center stage again yesterday -
- US & EU impose more sanctions on Vladimir and the Russian empire
- Israel & Hamas continue to engage in cease fire talks but Hamas refuses to cooperate, launching more attacks leaving Israel little to no choice.....
- Russian rebels shoot down a Malaysian commercial airliner over war torn Ukraine - Malaysian Airlines - can't catch a break as its stock plunges some 13%, 295 lives blown out of the sky...
- Risk off around the world as traders mull over the landscape....
- Generally upbeat US macro data & earnings fail to support broader mkt
The news sent shockwaves through the mkt – a disturbing reminder of the level of anxiety that exists. Stocks ended the day down 1% as treasuries and gold rallied on the classic flight to safety play. The VIX – spiking some 30% - a fairly decent move and one that is a reflection of the fact that the mkt has become too complacent in recent months.
No matter what – it is worth noting that investors had become almost immune to the worsening geo-political issues that have been simmering on the back burner - and for the most part - many write it off as an annoyance until it isn't...and yesterday it wasn't.....remember that investors have always had to contend with the unrest.....but this latest round of unrest especially in Israel and the Mid-East – could become the catalyst for a swift move lower.
And I say swift - because did you see it? Headlines or tweets hit the airwaves and the mkt reacts in milliseconds. How you ask? Can you say ‘smart logic algorithms’?
You see - The first reaction (sell) was created by hi speed computers that read and then interpret the headlines - are they positive words or negative words - and then the magic happens. Once the logic decides on the tone - it instructs the computer to initiate/generate SELL orders and spray the 70+ mkt venues to get out in front - forcing the mkt lower which then causes a chain reaction and creates more pressure....The mkt only rebalances once the humans have the opportunity to assess or the headline is withdrawn causing a contra reaction amongst the hi speed computers causing swift short term volatility - good for them, frustrating for the investor.
So you see - when we get a headline that says: Malaysian Airliner Shot Out of Sky - the smart logic algo's kick into high gear in a shoot first assess later reaction.
If the news is in fact negative then the selling continues...if the news is clouded and not so transparent - then the pressure stops until we get more clarity. And with the mkt already in negative territory on the day - any other negative story will only exacerbate the move....
Here at home –We were the ones that had most of the broad macro data as well as a host of earnings reports....
The Philly Fed report blew the doors wide open coming in at 23.9 vs an exp of 16 - an increase in new orders taking the credit.
Housing on the other hand was weak - falling 9.3% - but this time it was the rain in the south that screwed up this report because you can't build houses in the rain and the permitting process is taking longer as a result of all the recent layoffs in the building depts. - there is no one to issue the permits - isn't that a kick in the pants? But we are assured that this is also a temporary situation - look for next's months report to swing big the other way.....
The employment figures continued a trend of improvement, with initial jobless claims down at 302k compared with forecasts of 310k - so overall I would say positive - but traders could not let go of the geo-political issues that stole the headlines.
On the earnings front IBM released a better than expected report. Revenue came in at $24.4 bil which was higher than the $24.1 bil expected. Morgan Stanley and United Health Group and Google all added to the upbeat reports....
In M&A activity we also heard from Liberty Global – buying Fox’s 6.4% stake in UK free to air company ITV for some 481 mil Euros. This confirms that the battle is on for content in the media industry and is consistent with the ‘eat or be eaten mentality’ – which has always been the driving force in merger deals - it's just getting a bit more interesting....
In the media world it is beginning to feel like a ‘frenzy’ as TWX remains solidly in play and as more potential players enter the space – cable companies, Telco's and internet companies all seem to be competing in the sector. And the world turns.....
Overnight- mkts mostly lower on the back of US action and rising tensions. The sense is that as we move into the weekend - it is more of a risk off mentality as so much can happen. Japan -1%, Hong Kong -0.28%, China +0.17% and ASX +0.17%.
In Europe mkts are all lower as the risk off mentality continues....FTSE -0.4%, CAC 40 - 0.10%, DAX - 0.52%, EUROSTOXX -0.27%, SPAIN -0.67% and ITALY -0.13%.
Porcini Rub for Broiled Lollipop Lamb chops or Grilled Steak Tagliata
This is all about the rub - where you use it - is up to you....
For this you need: Dried porcini mushrooms, sugar, s&p, garlic, olive oil and balsalmic vinegar.
Porcini Rub: Grind 1 oz of dried mushrooms until fine...you can use a mortar and pestle or a food processor.
Next combine the mushroom powder with 2 tblspns of sugar, 1 tblspn of s&P, 4 garlic cloves and about 1/4 cup of olive oil. Set aside. You can make a container of this rub up to this point and store in the fridge in a sealed jar. When you get ready to use it - take it out of the fridge and let it come to room temp. Mix and then massage it into your meat of choice. I would use this on a rib-eye or on lollipop lambchops....
For the Lollipop Lamb chops - massage the chops with the porcini rub - both sides - place on broiler pan, and let rest for 20 mins or so.
Turn the broiler on high – and place the chops under the broiler. If you choose - you can also do these on the grill but beware - they will cook fast - so stay tuned.
You want them to be juicy yet a bit crusty......Once they are done – arrange on a bed of arugula salad – seasoned with s&p, fresh lemon juice, a splash of oil - drizzle some nice balsalmic vinegar over the top and serve.
Now if you choose to use a rib-eye then serve it up 'Tagliata Style'
Tagliata (tal-li-ata) is just the way you serve it. Sliced and fanned out on the plate topped with the arugula salad and shaved parmegiana cheese.
Simple, easy. Enjoy.
- US & EU impose more sanctions on Vladimir and the Russian empire
- Israel & Hamas continue to engage in cease fire talks but Hamas refuses to cooperate, launching more attacks leaving Israel little to no choice.....
- Russian rebels shoot down a Malaysian commercial airliner over war torn Ukraine - Malaysian Airlines - can't catch a break as its stock plunges some 13%, 295 lives blown out of the sky...
- Risk off around the world as traders mull over the landscape....
- Generally upbeat US macro data & earnings fail to support broader mkt
The news sent shockwaves through the mkt – a disturbing reminder of the level of anxiety that exists. Stocks ended the day down 1% as treasuries and gold rallied on the classic flight to safety play. The VIX – spiking some 30% - a fairly decent move and one that is a reflection of the fact that the mkt has become too complacent in recent months.
No matter what – it is worth noting that investors had become almost immune to the worsening geo-political issues that have been simmering on the back burner - and for the most part - many write it off as an annoyance until it isn't...and yesterday it wasn't.....remember that investors have always had to contend with the unrest.....but this latest round of unrest especially in Israel and the Mid-East – could become the catalyst for a swift move lower.
And I say swift - because did you see it? Headlines or tweets hit the airwaves and the mkt reacts in milliseconds. How you ask? Can you say ‘smart logic algorithms’?
You see - The first reaction (sell) was created by hi speed computers that read and then interpret the headlines - are they positive words or negative words - and then the magic happens. Once the logic decides on the tone - it instructs the computer to initiate/generate SELL orders and spray the 70+ mkt venues to get out in front - forcing the mkt lower which then causes a chain reaction and creates more pressure....The mkt only rebalances once the humans have the opportunity to assess or the headline is withdrawn causing a contra reaction amongst the hi speed computers causing swift short term volatility - good for them, frustrating for the investor.
So you see - when we get a headline that says: Malaysian Airliner Shot Out of Sky - the smart logic algo's kick into high gear in a shoot first assess later reaction.
If the news is in fact negative then the selling continues...if the news is clouded and not so transparent - then the pressure stops until we get more clarity. And with the mkt already in negative territory on the day - any other negative story will only exacerbate the move....
Here at home –We were the ones that had most of the broad macro data as well as a host of earnings reports....
The Philly Fed report blew the doors wide open coming in at 23.9 vs an exp of 16 - an increase in new orders taking the credit.
Housing on the other hand was weak - falling 9.3% - but this time it was the rain in the south that screwed up this report because you can't build houses in the rain and the permitting process is taking longer as a result of all the recent layoffs in the building depts. - there is no one to issue the permits - isn't that a kick in the pants? But we are assured that this is also a temporary situation - look for next's months report to swing big the other way.....
The employment figures continued a trend of improvement, with initial jobless claims down at 302k compared with forecasts of 310k - so overall I would say positive - but traders could not let go of the geo-political issues that stole the headlines.
On the earnings front IBM released a better than expected report. Revenue came in at $24.4 bil which was higher than the $24.1 bil expected. Morgan Stanley and United Health Group and Google all added to the upbeat reports....
In M&A activity we also heard from Liberty Global – buying Fox’s 6.4% stake in UK free to air company ITV for some 481 mil Euros. This confirms that the battle is on for content in the media industry and is consistent with the ‘eat or be eaten mentality’ – which has always been the driving force in merger deals - it's just getting a bit more interesting....
In the media world it is beginning to feel like a ‘frenzy’ as TWX remains solidly in play and as more potential players enter the space – cable companies, Telco's and internet companies all seem to be competing in the sector. And the world turns.....
Overnight- mkts mostly lower on the back of US action and rising tensions. The sense is that as we move into the weekend - it is more of a risk off mentality as so much can happen. Japan -1%, Hong Kong -0.28%, China +0.17% and ASX +0.17%.
In Europe mkts are all lower as the risk off mentality continues....FTSE -0.4%, CAC 40 - 0.10%, DAX - 0.52%, EUROSTOXX -0.27%, SPAIN -0.67% and ITALY -0.13%.
Porcini Rub - on Lollipop Lambchops or Grilled Rib-eye
Porcini Rub for Broiled Lollipop Lamb chops or Grilled Steak TagliataThis is all about the rub - where you use it - is up to you....
For this you need: Dried porcini mushrooms, sugar, s&p, garlic, olive oil and balsalmic vinegar.
Porcini Rub: Grind 1 oz of dried mushrooms until fine...you can use a mortar and pestle or a food processor.
Next combine the mushroom powder with 2 tblspns of sugar, 1 tblspn of s&P, 4 garlic cloves and about 1/4 cup of olive oil. Set aside. You can make a container of this rub up to this point and store in the fridge in a sealed jar. When you get ready to use it - take it out of the fridge and let it come to room temp. Mix and then massage it into your meat of choice. I would use this on a rib-eye or on lollipop lambchops....
For the Lollipop Lamb chops - massage the chops with the porcini rub - both sides - place on broiler pan, and let rest for 20 mins or so.
Turn the broiler on high – and place the chops under the broiler. If you choose - you can also do these on the grill but beware - they will cook fast - so stay tuned.
You want them to be juicy yet a bit crusty......Once they are done – arrange on a bed of arugula salad – seasoned with s&p, fresh lemon juice, a splash of oil - drizzle some nice balsalmic vinegar over the top and serve.
Now if you choose to use a rib-eye then serve it up 'Tagliata Style'
Tagliata (tal-li-ata) is just the way you serve it. Sliced and fanned out on the plate topped with the arugula salad and shaved parmegiana cheese.
Simple, easy. Enjoy.
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