As the world waited over the weekend - the fate of Greece continues to hang in the balance as investors/traders worry about the fall out. Negotiations dragged on and on and the fear continues to build as Greece ‘circles the drain’…. The possibility of defaulting on payments to the IMF (International Monetary Fund) and the ECB (European Central Bank) caused much of the negative reaction (although not all of it) seen around the globe last Friday. Investors clearly concerned that a ‘Grexit’ (Greek exit) would cause short term instability for global mkts…. Greek Finance Minister Yanis Varoufakis hammering this point home as he tries to create paralysis telling Spanish TV that
"Anyone who toys with the idea of cutting off bits of the euro zone hoping the rest will survive is playing with fire,"
Finance ministers meeting in DC last week were keen to avoid the subject for fear of creating more angst and uncertainty as negotiations continued. Greek PM Tsipiras has some tough choices to make – but first he must realize that he is NOT in the driver’s seat – He is not the one calling the shots here and he has not endeared himself to many of the European nations (read: Germany) that are trying to save his a__! Portuguese Finance Minister Maria Luis Albuquerque summed it up nicely –
"It's difficult to predict at this stage. At this particular point, it's really up to the Greek authorities to discuss how they want to position themselves. The Eurogroup partners continue to be open to a solution and continue to be constructive…but it's mostly in the Greek authorities' hands, more than anyone else's."
Other issues that contributed to the mkt’s weakness last Friday was news that China’s regulator is growing concerned about the strength of the Chinese mkt – causing them to ban a type of financing called ‘Umbrella Trusts”; tightening margin requirements on small caps and announcing rules to make it easier to sell stocks short…….this initiated the selloff in Asian mkts which then set the tone for the day – allowing the mkts to focus on anything negative….
So as the sun rose in Europe – the conversation turned to Greece – causing mkts there to come under pressure and then as we prepared for trading in the states – investors focused on the rising CPI (consumer price index) and then seemed suddenly concerned over ‘weak’ corporate profits…..funny how that works – right? As long as the global data is stable – investors were willing to overlook weak earnings telling themselves that the 1Q is an outlier – what is important is the future…then once the global data comes into question – then strategists and analysts suddenly turn that ‘outlier’ argument into the concern of the day…..Taking everything out of the fridge and throwing it into the pot….
Friday’s selloff erased all of the gains for the Dow and has left the S&P up 1% for the year. A look at the uptrend line on a DOW chart drawn back to November 2014 reveals that the DOW should find support at the 17600 level or 226 points from here. The question is: Will we test it? The mkts are clearly confused – unable to break out or break down – The S&P – which closed at 2081 - is still closer to the all-time highs than not…..as it remains in the 2075/2111 range…. But does Friday’s action suggest that the ‘correction’ has begun? Not so much….at least not today….
US futures are surging by 12 pts in very early pre-mkt trading (5 am) – Greece did not enter the drain (yet) but investors are watching closely……IMF chief Christine Lagarde telling the world that Greece would not be allowed to miss the May 12th payment due to the IMF – so the plot thickens…… Additionally the PBoC (Peoples Bank of China) announced a new stimulus measure…..they cut the reserve requirement ratio for banks by 1% - this is the largest cut in that ratio in 7 years and the second cut in that rate this year. Interestingly enough though, this did not stop Asian mkts from falling on Monday – as many of those mkts are up big this year and investors may be interpreting this latest move as a ‘panic signal’……….Look – after the stellar move higher this year – any pullback is long overdue…so today’s Asian weakness is not causing European mkts nor US futures to signal further trouble today.
European mkts are all moving higher in early trading as the move by the Chinese is boosting many of the commodity and mining stocks – all which have heavy exposure to China. Greece continues to be of concern – but since the jury is still out – investors are willing to bet that some agreement is in the works – one that will allow Greece to remain in the Eurozone….. Surely there is more to come.
Once again at home – mkts are looking higher as many investors/asset managers had a chance to re-group over the weekend and realize that while the economy did slow a bit in the 1Q – this is not the story for 2015. Futures on the Dow are currently +120 pts, the S&P +12 pts, Nasdaq +22 pts and on the Russell Small Cap + 5 pts…. I Suspect that the mkt will remain in the 2075/2111 range – until we get a definitive outcome concerning Greece and the possible contagion it will spew…
Today we will get earnings from MS, HAL. RCL, STI, HAS and IBM.
I am in DC today and tomorrow at the NOIP conference and will return on Wednesday.
You need: 1 lb of Fusilli, Italian sweet sausage, (out of the casing), yellow Onion Diced, Fresh Mushrooms cleaned and rough chopped, garlic - also chopped - not diced, butter, Olive Oil, Dry White Wine, s&p, Heavy Cream (or light cream). Chopped Fresh Parsley, Chopped Lightly Toasted Walnuts - (The lightly toasted chopped walnuts adds a bit of texture and is a great contrast to the creamy sauce.), and as always Freshly Grated Parmesan Cheese
Bring a lg pot of salted water to a boil.
In a heavy saucepan over medium heat, add a dollop of butter and some olive oil - next toss in the chopped garlic and sauté.....now add in the onion and sauté until soft and brown.....Now add the sausage - breaking up the meat with a fork as it cooks. Once the meat begins to brown, Add mushrooms and continue to cook for about 8 to 10 mins.
Next add white wine - enough to just cover the sausage....do not drown - just bathe. Simmer uncovered until the wine has reduced by half. Add cream and season with s&p to taste.
Continue to cook over medium low heat until the sauce has thickened, should be about 10 minutes.
Add the pasta to the boiling water and cook until it is al dente.
Drain the pasta, always keeping a mugful of the pasta water. Add the pasta to the sauce and mix well.....if the sauce seems too thick then add in some of the reserved pasta water.
Serve immediately in warmed bowls - topped with chopped parsley and a handful of chopped toasted walnuts. Have plenty of fresh grated parmegiana cheese on the table for your guests.
Buon Appetito.
"Anyone who toys with the idea of cutting off bits of the euro zone hoping the rest will survive is playing with fire,"
Finance ministers meeting in DC last week were keen to avoid the subject for fear of creating more angst and uncertainty as negotiations continued. Greek PM Tsipiras has some tough choices to make – but first he must realize that he is NOT in the driver’s seat – He is not the one calling the shots here and he has not endeared himself to many of the European nations (read: Germany) that are trying to save his a__! Portuguese Finance Minister Maria Luis Albuquerque summed it up nicely –
"It's difficult to predict at this stage. At this particular point, it's really up to the Greek authorities to discuss how they want to position themselves. The Eurogroup partners continue to be open to a solution and continue to be constructive…but it's mostly in the Greek authorities' hands, more than anyone else's."
Other issues that contributed to the mkt’s weakness last Friday was news that China’s regulator is growing concerned about the strength of the Chinese mkt – causing them to ban a type of financing called ‘Umbrella Trusts”; tightening margin requirements on small caps and announcing rules to make it easier to sell stocks short…….this initiated the selloff in Asian mkts which then set the tone for the day – allowing the mkts to focus on anything negative….
So as the sun rose in Europe – the conversation turned to Greece – causing mkts there to come under pressure and then as we prepared for trading in the states – investors focused on the rising CPI (consumer price index) and then seemed suddenly concerned over ‘weak’ corporate profits…..funny how that works – right? As long as the global data is stable – investors were willing to overlook weak earnings telling themselves that the 1Q is an outlier – what is important is the future…then once the global data comes into question – then strategists and analysts suddenly turn that ‘outlier’ argument into the concern of the day…..Taking everything out of the fridge and throwing it into the pot….
Friday’s selloff erased all of the gains for the Dow and has left the S&P up 1% for the year. A look at the uptrend line on a DOW chart drawn back to November 2014 reveals that the DOW should find support at the 17600 level or 226 points from here. The question is: Will we test it? The mkts are clearly confused – unable to break out or break down – The S&P – which closed at 2081 - is still closer to the all-time highs than not…..as it remains in the 2075/2111 range…. But does Friday’s action suggest that the ‘correction’ has begun? Not so much….at least not today….
US futures are surging by 12 pts in very early pre-mkt trading (5 am) – Greece did not enter the drain (yet) but investors are watching closely……IMF chief Christine Lagarde telling the world that Greece would not be allowed to miss the May 12th payment due to the IMF – so the plot thickens…… Additionally the PBoC (Peoples Bank of China) announced a new stimulus measure…..they cut the reserve requirement ratio for banks by 1% - this is the largest cut in that ratio in 7 years and the second cut in that rate this year. Interestingly enough though, this did not stop Asian mkts from falling on Monday – as many of those mkts are up big this year and investors may be interpreting this latest move as a ‘panic signal’……….Look – after the stellar move higher this year – any pullback is long overdue…so today’s Asian weakness is not causing European mkts nor US futures to signal further trouble today.
European mkts are all moving higher in early trading as the move by the Chinese is boosting many of the commodity and mining stocks – all which have heavy exposure to China. Greece continues to be of concern – but since the jury is still out – investors are willing to bet that some agreement is in the works – one that will allow Greece to remain in the Eurozone….. Surely there is more to come.
Once again at home – mkts are looking higher as many investors/asset managers had a chance to re-group over the weekend and realize that while the economy did slow a bit in the 1Q – this is not the story for 2015. Futures on the Dow are currently +120 pts, the S&P +12 pts, Nasdaq +22 pts and on the Russell Small Cap + 5 pts…. I Suspect that the mkt will remain in the 2075/2111 range – until we get a definitive outcome concerning Greece and the possible contagion it will spew…
Today we will get earnings from MS, HAL. RCL, STI, HAS and IBM.
I am in DC today and tomorrow at the NOIP conference and will return on Wednesday.
Rigatoni in a Nutty Sausage Cream Sauce
Norcia, a town located in the mountains of southeastern Umbria - in the province of Perugia is well known for this dish. The region is also known for its beautiful scenery abutting the Monti Sibillini - a sub range of the Apennines Mountain range - and famous for its black truffles and pork. This pasta is delicious and filling....so a plate of toasted garlic bread and a glass of white wine make this a complete and simple meal.You need: 1 lb of Fusilli, Italian sweet sausage, (out of the casing), yellow Onion Diced, Fresh Mushrooms cleaned and rough chopped, garlic - also chopped - not diced, butter, Olive Oil, Dry White Wine, s&p, Heavy Cream (or light cream). Chopped Fresh Parsley, Chopped Lightly Toasted Walnuts - (The lightly toasted chopped walnuts adds a bit of texture and is a great contrast to the creamy sauce.), and as always Freshly Grated Parmesan Cheese
Bring a lg pot of salted water to a boil.
In a heavy saucepan over medium heat, add a dollop of butter and some olive oil - next toss in the chopped garlic and sauté.....now add in the onion and sauté until soft and brown.....Now add the sausage - breaking up the meat with a fork as it cooks. Once the meat begins to brown, Add mushrooms and continue to cook for about 8 to 10 mins.
Next add white wine - enough to just cover the sausage....do not drown - just bathe. Simmer uncovered until the wine has reduced by half. Add cream and season with s&p to taste.
Continue to cook over medium low heat until the sauce has thickened, should be about 10 minutes.
Add the pasta to the boiling water and cook until it is al dente.
Drain the pasta, always keeping a mugful of the pasta water. Add the pasta to the sauce and mix well.....if the sauce seems too thick then add in some of the reserved pasta water.
Serve immediately in warmed bowls - topped with chopped parsley and a handful of chopped toasted walnuts. Have plenty of fresh grated parmegiana cheese on the table for your guests.
Buon Appetito.
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