More Yellen Testimony & Until The Vote!

Stocks chopped all day with the bulls taking a slight edge late in the day....Stocks closed slightly higher not with much commitment....Some suggesting that the action yesterday being driven by Janet Yellen's testimony on Capitol Hill - but I would argue otherwise......Not sure her testimony had anything to do with mkt action at all.....look - what did she say?  Was it any different than what we knew?  If anything - the testimony provided some late morning/early afternoon entertainment for the industry and it surely gave fodder for the late night shows....

Ok – this is why so many people are frustrated, confused and disgusted with anything Washington…… Now while there was no other US macro news to discuss - the focus was on Janet Yellen yesterday – and the stage was the Capitol building – Janet gave her semiannual testimony to the Senate – testimony about the health of the US economy and what the FED sees down the road…  she is then subject to questioning from Senators that at times make you wonder - Who is this guy?  It was another day of 'cat and mouse' -  and on a scale of 1-10 - it was about a 2.  

During the testimony - she tried to remain optimistic but continued to talk out of both ends.....First she had this to say:

“The chances of a recession are quite low despite mounting worries that the US could be headed toward a downturn after 7 years of tepid economic expansion.  The US economy is doing well!”

And then she flips…..

“Considerable uncertainty about the economic outlook remains. Consumer spending and investment could falter.  Moreover, slow productivity growth could persist, which would hold down wage growth and income generation.  We cannot rule out the possibility expressed by some prominent economists that slow productivity growth seen in recent years will continue into the future.”

So which is it?  Is the US economy doing well or are they all full of ----? (four letters – 1 vowel and 3 consonants).  Apparently we are doing so well that the FED has now taken any rate hike OFF the table for the foreseeable future….and now fully acknowledges that maybe they got it wrong.......BINGO!

Never mind the insane questions that our elected officials chose to ask… .It’s as if they don’t understand – Why would any Senator ask her  - why jobs are leaving this country and going to foreign workers?  It is not her job to stop American companies from choosing foreign workers over Americans......It is NOT Janet Yellen’s job or the FED's job to turn our economy around…it is her job to help stabilize the economy via monetary policy while congress enacts legislation – via fiscal policy to create job growth, wage growth, opportunities, etc.  It is Congress's job to give American companies a reason to stay in America....(think tax code) Apparently congress has had a brain freeze -  for the past 8 years they have forgotten their role, what they were elected for and who they serve– I mean what have they done besides raise taxes on everyone and everything they can?

Oh right - The ACA (Affordable Care Act) - a healthcare mandate that is about to implode as costs skyrocket and insurers ask for 30%+ rate increases or they shut the doors on whole states.  Oh yeah…and they enacted so much regulation that they are choking the very lifeblood out of everything they touch….

All while Elizabeth Warren (who apparently is now on Hillary's short list of VP candidates)  reprimands Yellen on the 'lack of diversity' on the FED - saying that 10 of the 12 regional Fed Presidents are men.........Is it me?

What exactly does 'gender' diversity on the FED have to do with the current economic conditions in this country?  Would having more women Fed Presidents  make the economy function any better?  Listen up Elizabeth - it is YOUR job in Congress to enact policies that will encourage growth, cut taxes, write policies that create jobs and encourages businesses to invest, grow and employ Americans......It is not the FED's job to do your job...

And today – we get more of it….Today – Janet will be sitting in front of the House – fielding questions from that group…..questions that are sure to make your skin crawl – when it becomes clear that they have no clue either….

So why did stocks churn?   Why should they do anything?  We are in a vacuum and we are being held hostage by the BREXIT vote that is now only hours away…… Yellen re-iterated the view that tomorrow's  referendum on whether Britain will remain in the EU could have "significant economic repercussions." But she didn’t want to give an opinion on how the British should vote only to say should Britain exit the EU -  the markets are likely to react in “a kind of risk-off sentiment and that we might see a 'flight to safety' - noting that the dollar and other safe have currencies could be pushed higher... Do you think? 

Now I am sure that you are as tired of hearing about the vote as the next guy – but – this vote carries a wide range of implications not only for the UK, but for the EU and the global economy as well. And in the end – this vote has the power to change the landscape of Europe no matter which side wins…..(I am still of the belief that the Brits will vote to stay..)  This referendum has delivered a shock wave thru out the EU and its result will be closely watched by the other member states.  Will this referendum give birth to competing referendums in other member states?  And if so – does the very core of the European Union begin to crumble?  And if that happens – what becomes of this experiment?  -  Fredrik Reinfeldt – former Swedish PM had this to say:

“An exit vote weakens us and it drifts towards a more unbalanced European Union – Economies on both sides of the English Channel would be damaged.”   

UK Referendum timetable:   The polls will close at 10 pm UK Time (5 pm EST)  on June 23rd.

There are no 'official exit polls - but there will be plenty of speculation.  First announcements begin at 11:30 pm -UK Time (6:30 pm EST).  Then as the night progresses - each individual region will report....

The first official regions should report at about 7:30 pm EST
23 more regions by 9 pm EST, 60 more between 9 PM - 10 PM EST.

215 more regions will report between 10 PM and Midnight EST - at this point it should be clear what the result is...

Final results should be known by 2:30 am/3:30 am  EST (June 24th)

US futures are +2 right now.....trading at 2082.....now as discussed - we are stuck between 2050/2100...and since they have NOT rallied the mkt really hard ahead of the vote - then a stay vote does have the potential to ignite a huge rally....taking us up and thru 2100 like a hot knife thru butta.....A no vote will have the same but OPPOSITE reaction.....we could slice down and thru 2050 just as quickly....potentially not finding support until we reach the 2020 level - which is the 200 dma.  It is sure to be another quiet day - tune into to the Capitol Hill Station if you want to laugh a bit....otherwise - sit tight - the fireworks are about to start..... 
 

Grilled Pork Roast Stuffed w/Provolone and Tuscan Herbs

.This is a great dish – easy to prepare and absolutely delicious is cooked just right on the grill….you need to begin by making a Tuscan herb mix....The mix consists of Sage, Rosemary, Garlic and sea salt.  You can add other herbs as you wish – maybe bay leaf, or that fresh basil that you have growing in your garden.  There is no magic, the creation is completely up to you – but here is a good guide…use 6 parts sage, 2 parts rosemary and 12 cloves of garlic.  About 1 tblsp of Salt and some pepper…do not kill it with too much pepper.  Your guests can always add pepper.

Remove the herbs from their branches and pile on the cutting board with sliced garlic and the salt.  Now begin chopping and mixing the herbs…the best knife to use is what we call a “mezzaluna”  or half moon.  It is one of those rounded knives (a half moon) with handknobs on both ends that you rock back and forth – that chops so nicely.  It is a must have in the kitchen. 
Chop until the herbs are fine – now transfer to a cookie sheet and allow to dry for a day or two.  Now put them in a jar and seal. 

Ok – next – the pork roast….have the butcher slice it open – (tell him you want to stuff and roll it).  Open it up and massage a bit of olive oil – s&p.  Now you can line the pork roast with provolone cheese and then the herbs.  Carefully roll it, and tie it with kitchen string.  Now season it on the outside with s&p and set aside until ready to cook it.
Heat the grill to high and get it really hot….using your BBQ brush – clean the grate….place the pork on the grill and turn the heat to med.  Cover and allow to cook – turning it to grill all around. 

While this is grilling – you can prepare some apple sauce or if your prefer try a Fig spread.  In a sauce pan - Add in ½ lb of figs, some chopped rosemary, 1/2 cup of orange juice, 1 tspn of honey, 1/4 cup of water and s&p.  Bring to a boil then simmer for about 20 mins.  Mix should be nice and thick.  Now let it cool - strain - reserving the liquid -  then place in the food processor and blend well until smooth - add back a some of the liquid to keep it smooth and spreadable.   Cover and put in the fridge. 

When the pork is cooked – remove from the grill, cover with foil and let rest before slicing.  After 10 mins – slice and serve with the fig spread and the apple sauce.  Allow your guests to choose.  Set the outdoor table with cloth napkins, wine glasses and water goblets.  Serve the pork with roasted Brussel sprouts or sautéed broccolini, a large salad and your favorite red wine. 

 
Buon Appetito.