And the Wave Pounds the Shores of the US

Stocks came under pressure once again - as the lingering concerns over economic growth, a strengthening dollar, weakening oil prices along with other commodities, a weaker Apple (which I think is way overdone) and new comments from San Fran's FED President Williams and Atlanta's FEd Pres Lockhart caused angst all over again.....and overnight the selling continued....global mkts all came under pressure.....as sentiment hits a wall..... And like the 'wave' that happens a the baseball stadium - the 'wave' is happening around the world.

In Asia - mkts under duress - Japan which is closed today due to a holiday has traded down 9% since last week.....after the BoJ left policy unchanged - the weakness in the other mkts being credited to currency moves as there was little macro data to drive mkts.....China - 0.05%, Hong Kong -0.73% and ASX -1.54%

In Europe - the mkts are mostly lower by 0.75% - 1% - taking their lead from a weaker Asia as well as more disappointing earnings reports across a range of sectors...banks, Industrials, Telecoms and airlines.... The stronger dollar impacting the usual suspects - think miners - gold, copper, zinc, silver, coal and oil....FTSE -1.19%, CAC 40 - 0.69%, DAX - 0.73%, EUROSTOXX -0.8%, SPAIN -0.8% and ITALY +0.05%.

US FUTURES are getting creamed.....currently down 15 pts in pre-mkt trading... If they hold right here then look for the S&P to trade right to 2050! Recall my prediction on Monday.......as the 'wave' comes across the Atlantic and pounds the shores of NY and the eastern seaboard......

Will it hold or not? If we hold then look for volumes to increase as the bulls defend the position........ If we fail to hold 2050 - then look for 2035 to be the next stop as it represents the 50 dma and should provide some relief...if the pressure really builds then the 200 dma at 2013 would be the next target.....and all of this makes sense - as analysts/strategists/investors and traders consider what higher rates means to mkt valuation......If it gets really ugly - then expect the FED to 'back-peddle'.....because the last thing they want is a meltdown going into the presidential convention cycle....

Earnings today include Time Warner, Delphi Auto, Kraft, Tesla and 21st Cent Fox.....

Today also brings us a rash of eco data.... Mortgage Apps - 3.4%, ADP employment - exp of +195k, Non Farm Productivity exp of -1.3% (Non Farm Productivity measures the output produced for each hour of labor worked. It is considered the most accurate gauge of business health - so a negative number is not a bullish number.....Capisce?). Markit Services PMI of 52.1, Factory Orders of +0.6% and Durable Goods of +0.8% - but Durable Goods EX transports of -0.1%...... just sayin.....

Ok....back to FED speak.....Yes sports fans - now that earnings are over - its back to the FED speak.....and on Monday - both Mr. Lockhart and Mr. Williams reminded investors that rates are on the rise.......Mr. Williams said that in his view, we and the U.S. economy, are ready for higher interest rates saying:

"It makes sense for us to be moving interest rates gradually back to more a normal level over the next couple years, I actually think that's a sign of strength for the global economy."

And Dennis (Lockhart) well he said that the FED would NOT' back -peddle' on the expectation of 2 rate hikes in 2016..... And to that I say "Challenge"!

Either way - the mkt will hear what it wants to hear and then re-price accordingly...which is what it is doing.....I mean look - the FED is responsible (and I am not saying that as a negative - I am just pointing out the obvious) for where the mkt is now (think all of that Kool Aid) so at some point they must take responsibility over where it will go when they start to tighten - makes perfect sense.....we CAN'T keep this charade going on forever.....So either get on with it or stop crying wolf......the pain is going to come sooner or later....the question is when do you want it?

As is typical this time of year - the FED was determined to drive stocks up going into April 15th, and they did it again.....and this caused the dollar index to fall about 6% from the January highs.....forcing other currencies to strengthen - think Yen and Euro and now we are seeing the implications of this policy - think weakening international economies - Japan and the Euro zone. And with the UK on the verge of voting themselves out of the European Union just ahead of the June FED meeting - does the FED really want the Euro to strengthen? Probably not -because a 'Brexit' will cause financial mkt turmoil which is why we will see the jawboning start all over again - as they try to talk the dollar up forcing the Euro and the Yen down........now whether or not the FED actually raises rates is still up for grabs....I do not believe they will - but just like Uncle Mario (Draghi) does - the FED can jawbone rates higher and the dollar higher - causing the Yen and the Euro to weaken a bit......and this will weigh on stocks.....
And in the latest episode of US politics -

It looks like The Donald has in fact pulled off what so many thought comical or impossible..... A complete 'outsider' has beaten the GOP to a pulp - he has tapped into an anger in the nation - the GOP refusing to listen, the GOP trying to subvert his efforts only raised the stakes...as they live in the past - .... so I guess now they have little choice - If the goal is to beat the Democrats - then someone has to take the lead and come into the 21st century...........Welcome to the 'new world'

Speaking of the Democrats - How shocked is Hil? Bernie Sanders takes Indiana - really? She has to be fit to be tied...how could this happen? I mean - look - "It's me, Hillary". Now while she still remains the presumptive nominee - it is getting hot in the kitchen.......

 

Braised Halibut w/Mushrooms, Leeks and Clams

This is easy and delicious. You can feel the sand between your toes and the salt air on your face..........Enjoy

During the summer months you need to get Pacific Halibut - because the Pacific Ocean is colder year round vs the Atlantic and the fish does not fall prey to some of the parasites that exist in warmer waters. Atlantic Halibut is best eaten in the colder months when the water is at its coldest....

Ingredients: Halibut, mushrooms (preferable oyster mushrooms), butter, 3 lg leeks, s&p, chicken broth, 2 doz littleneck clams and chopped Italian parsley.

Season the Halibut with s&p. Set aside.

Start by melting the butter in a sauté pan over med heat - do not burn the butter - add sliced mushrooms - like 2 cups and the sliced leeks. Trim the leeks and use only the white and light green part of the stalk - discard the rest. Season with s&p and reduce heat to med low and cook for about 10 mins or until the leeks are soft. Now add about 3 cups of the chicken broth and raise the heat to med hi - let it come to a boil.

Now add the fish and clams to the sauté pan - wait for it to re-boil and then reduce heat to low and cover. Cook for about 6 or 7 mins...make sure all of the clams have opened. If you still have some unopened clams - remove the fish and the opened clams and continue to cook for another 3 mins or so to give the stubborn ones a bit more time. At this point throw out any unopened clams.

Serve this dish in a full size bowl (shallow is best) bathing in the clams and broth topped with the mushroom and leeks. Sprinkle with the chopped Italian parsley at the end. Enjoy this with a crisp, chilled white wine.



Buon Appetito.