I guess crime DOES pay and money talks.....less than 15 hrs ago - we found out that the infamous Steven Cohen has bought his way out of going to the 'big house' as a federal judge approved the $1.8 billion settlement resulting from the guilty plea of hedge fund operator - SAC Capital on charges 'related to insider trading' by HIS employees......The fine a result of him 'failing to prevent' his employees from engaging in the illegal hanky panky......
SAC Capital? You won't hear that name any longer....as he tries to distance himself from the saga....You can now find him under: Point72 - a family office that will manage the balance of his wealth - estimated at some $8 billion...
So - let's just think about this in relation to the unfolding saga on the US stage at the moment....it is called HFT (High Frequency Trading) - Now to be fair - the HFT moniker might be getting a bit of a bad name.....HFT in itself is the use of high speed computers and state of the art technology to streamline the execution process....(I can live with that) but the one that seems to be stirring up the debate is the deliberate 'predatory' type of HFT - and here my friends is what we should all be concerned about......More about this later.....
Does the recent announcement by our dear friends at Goldman Sachs suggest anything? I mean - GS! All they do is 'print money' doing 'God's work' - as Uncle Lloyd so eloquently informed us on March 28, 2010. (2013 they earned some $7.1 bil in equity trading alone) And now - they are giving up on their Sigma X - their dark pool......(because as noted in yesterday's journal story - they are "not so sure" how much money they actually make in that venue - so we'll just shut it down to avoid any impression of being - what's the word - CONFLICTED?) My head is about to blow off my shoulders..... What exactly goes on in that dark pool? Why is it dark? Could they be 'failing to prevent some ' hanky panky' in that pool? Ohhhhhh...so many questions and not nearly enough answers....
Ok - onto the issues at hand - stocks got whacked yesterday - ( I guess that rally was a bit of a head fake) ....as they took back all of those ridiculous gains from Wednesday....it seems like after the computers had their way - the humans woke up and said - What the....? Why exactly did we trade back up to the highs? (see my note from 4/10/14) And BOOOOMMMMM! Reminds me of the Carol King song - "I Feel the Earth Move Under My Feet"
What is so great about this is that on Wednesday - after the FOMC mins were released.....the HFT computers went wild....- stocks are UNDERVALUED, the FED will step on the gas, the 'sell off' in the prior week was overdone....get in now before you miss the boat...and then on Thursday - when the humans awoke - the tone was decidedly changed....in fact the journal notes this morning that 'investors unloaded shares of once-highflying biotech's and internet companies over concerns that they are OVERVALUED...pushing the NASDAQ to its worst daily decline since 2011'. Clearly investors are nervous about the high-flying momo stocks and are now looking for more consistent- boring stability in earnings. So which is it? Are stocks overvalued or undervalued? And how can they go from one extreme to the other in less than 24 hrs? Oh - such a tangled web we weave.....Isn't technology great?
The overall tone turned negative causing even the S&P to break below its most recent support level at the 50 DMA of 1843.....ending the day down 39 pts at 1833....this is important because now - this broader measure has broken this KEY support and will now test the 100 DMA at 1828. The DOW ended the day teetering on its 50 DMA at 16,170. So what does all this mean? Probably a bit of indigestion for some traders while long term investors get ready for the feast. Look - there are always 2 sides to the story - right...what is bad for some is good for others....and the long term asset manager is singing - "Here Comes the Sun"......Little darling, it's been a long, cold lonely winter.....
JPM just announces!!! They posted $1.28 - falling short and missing the 'reduced estimate of $1.40 - stock trading down a buck and half or 2% vs. last night's close...
We haven't even discussed the increasing tension in Crimea, Ukraine and Russia and the latest sanctions imposed as well as the threat by Putin to cut off gas supplies to Ukraine.....and it's Friday - so the weekend is coming....will it be another 'risk off day'?
US futures which had been flat are now down 9 points approaching 1818.... Look for 1817 ish to offer some support - but if we break here - then a test down and thru 1800 over the next couple of weeks should not surprise anyone....My sense is that the 200 DMA at 1760 on the cash or 1745 on the future is where it 'wants to test'. Remember - this would represent a 7% 'adjustment off the highs' - not a full correction at all...but a healthy test and re-assessment of the State of the Union.
Overnight - Stock in Asia - jumped on the band wagon and took it on the chin....Japan suffering its biggest weekly since the Fukishima disaster in March 2011 following the release of minutes from the Bank of Japan’s March 10-11 meeting, which depicted a central bank that sees little reason to unleash further stimulus. This 'set the tone' for the rest of the region. Japan -2.3%, Hong Kong -0.8%, ASX -0.95%. and China -0.18%.
In Europe - the selloff continues......mkts are sharply lower this morning as they take the cue from Asia and Thursday's US rout. This morning's US tone -after the JPM announcement only forced more selling in Europe as the momo players are running for the hills and analysts suddenly question valuations. Makes you wonder - "What have these guys been doing?" FTSE -1.28%, CAC 40 -1.26%, DAX -1.36%, Eurostoxx -1.4% , Spain -1.25% and Italy -1.25%
On med heat - Add - 3/4 stick butter, a bit of olive oil and 2 sliced shallots...sauté shallots until soft 3 / 4 mins. Add sliced artichoke hearts and sauté with the shallots - 3 / 4 more mins........turn up the heat and Add halibut and sear on one side...flip the halibut - and then bathe in white wine ...bring to a boil, then reduce heat to med low & cover and steam for 10 mins....test to make sure the halibut is cooked to perfection....
*Artichoke hearts can be frozen or if canned - just rinse and slice in half.
Serve - on a warmed plate - with steamed French cut green beans seasoned with olive oil, salt and pepper and roasted butternut squash. As always include a mixed green salad dressed in a red wine Vinaigrette. The colors of the veggies (green and yellow) accented with the whiteness of the Halibut make for an eye appealing - sensory stimulating presentation.
Buon Appetito.
SAC Capital? You won't hear that name any longer....as he tries to distance himself from the saga....You can now find him under: Point72 - a family office that will manage the balance of his wealth - estimated at some $8 billion...
So - let's just think about this in relation to the unfolding saga on the US stage at the moment....it is called HFT (High Frequency Trading) - Now to be fair - the HFT moniker might be getting a bit of a bad name.....HFT in itself is the use of high speed computers and state of the art technology to streamline the execution process....(I can live with that) but the one that seems to be stirring up the debate is the deliberate 'predatory' type of HFT - and here my friends is what we should all be concerned about......More about this later.....
Does the recent announcement by our dear friends at Goldman Sachs suggest anything? I mean - GS! All they do is 'print money' doing 'God's work' - as Uncle Lloyd so eloquently informed us on March 28, 2010. (2013 they earned some $7.1 bil in equity trading alone) And now - they are giving up on their Sigma X - their dark pool......(because as noted in yesterday's journal story - they are "not so sure" how much money they actually make in that venue - so we'll just shut it down to avoid any impression of being - what's the word - CONFLICTED?) My head is about to blow off my shoulders..... What exactly goes on in that dark pool? Why is it dark? Could they be 'failing to prevent some ' hanky panky' in that pool? Ohhhhhh...so many questions and not nearly enough answers....
Ok - onto the issues at hand - stocks got whacked yesterday - ( I guess that rally was a bit of a head fake) ....as they took back all of those ridiculous gains from Wednesday....it seems like after the computers had their way - the humans woke up and said - What the....? Why exactly did we trade back up to the highs? (see my note from 4/10/14) And BOOOOMMMMM! Reminds me of the Carol King song - "I Feel the Earth Move Under My Feet"
What is so great about this is that on Wednesday - after the FOMC mins were released.....the HFT computers went wild....- stocks are UNDERVALUED, the FED will step on the gas, the 'sell off' in the prior week was overdone....get in now before you miss the boat...and then on Thursday - when the humans awoke - the tone was decidedly changed....in fact the journal notes this morning that 'investors unloaded shares of once-highflying biotech's and internet companies over concerns that they are OVERVALUED...pushing the NASDAQ to its worst daily decline since 2011'. Clearly investors are nervous about the high-flying momo stocks and are now looking for more consistent- boring stability in earnings. So which is it? Are stocks overvalued or undervalued? And how can they go from one extreme to the other in less than 24 hrs? Oh - such a tangled web we weave.....Isn't technology great?
The overall tone turned negative causing even the S&P to break below its most recent support level at the 50 DMA of 1843.....ending the day down 39 pts at 1833....this is important because now - this broader measure has broken this KEY support and will now test the 100 DMA at 1828. The DOW ended the day teetering on its 50 DMA at 16,170. So what does all this mean? Probably a bit of indigestion for some traders while long term investors get ready for the feast. Look - there are always 2 sides to the story - right...what is bad for some is good for others....and the long term asset manager is singing - "Here Comes the Sun"......Little darling, it's been a long, cold lonely winter.....
JPM just announces!!! They posted $1.28 - falling short and missing the 'reduced estimate of $1.40 - stock trading down a buck and half or 2% vs. last night's close...
We haven't even discussed the increasing tension in Crimea, Ukraine and Russia and the latest sanctions imposed as well as the threat by Putin to cut off gas supplies to Ukraine.....and it's Friday - so the weekend is coming....will it be another 'risk off day'?
US futures which had been flat are now down 9 points approaching 1818.... Look for 1817 ish to offer some support - but if we break here - then a test down and thru 1800 over the next couple of weeks should not surprise anyone....My sense is that the 200 DMA at 1760 on the cash or 1745 on the future is where it 'wants to test'. Remember - this would represent a 7% 'adjustment off the highs' - not a full correction at all...but a healthy test and re-assessment of the State of the Union.
Overnight - Stock in Asia - jumped on the band wagon and took it on the chin....Japan suffering its biggest weekly since the Fukishima disaster in March 2011 following the release of minutes from the Bank of Japan’s March 10-11 meeting, which depicted a central bank that sees little reason to unleash further stimulus. This 'set the tone' for the rest of the region. Japan -2.3%, Hong Kong -0.8%, ASX -0.95%. and China -0.18%.
In Europe - the selloff continues......mkts are sharply lower this morning as they take the cue from Asia and Thursday's US rout. This morning's US tone -after the JPM announcement only forced more selling in Europe as the momo players are running for the hills and analysts suddenly question valuations. Makes you wonder - "What have these guys been doing?" FTSE -1.28%, CAC 40 -1.26%, DAX -1.36%, Eurostoxx -1.4% , Spain -1.25% and Italy -1.25%
Seared Halibut w/White Wine & Artichokes
Begin with 4 / 6 pieces of halibut. (with or without the skin - depends on what you like)On med heat - Add - 3/4 stick butter, a bit of olive oil and 2 sliced shallots...sauté shallots until soft 3 / 4 mins. Add sliced artichoke hearts and sauté with the shallots - 3 / 4 more mins........turn up the heat and Add halibut and sear on one side...flip the halibut - and then bathe in white wine ...bring to a boil, then reduce heat to med low & cover and steam for 10 mins....test to make sure the halibut is cooked to perfection....
*Artichoke hearts can be frozen or if canned - just rinse and slice in half.
Serve - on a warmed plate - with steamed French cut green beans seasoned with olive oil, salt and pepper and roasted butternut squash. As always include a mixed green salad dressed in a red wine Vinaigrette. The colors of the veggies (green and yellow) accented with the whiteness of the Halibut make for an eye appealing - sensory stimulating presentation.
Buon Appetito.
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