Markets march to new highs, noise subsides

How do you spell relief?  It was RISK ON yesterday - Investors/traders went all in on Monday

 – after Irma – a category 3 when she slammed into Florida – did not cause the wreckage that we had prepared for – I mean she did cause billions of dollars of damage – but it could have been so much worse - (there was no direct hit on Miami so those damage estimates will likely be much smaller than analysts anticipated).…..…..And with Chubby (Kim Jung On) remaining below the radar – you could just feel how the mkts were gonna react……The S&P broke to new all time highs -  tech, insurances and financials led the way - but you would be hard pressed to find any sector that was not up yesterday - including  utilities...

On the other hand - the safe haven assets saw the brunt of the selling.......US treasuries and Gold both under pressure as the recent sense of angst dissipated.  
In yesterday’s note I said -

“With global mkts all up better than 1% today - do not be surprised to see the S&P attempt to mimic that move.....currently with futures up 13 pts that is just about 1/2%.....which takes us to the yearly highs.....If we pierce the 2475 level - this will create all kinds of excitement and the algo's will kick in causing the mkt to make new highs.... Look for the insurers and financials to lead the way......If these stall after the opening then the broader mkt will stall as well....My sense is that this will not stall (at least for today) .....but we shall see what the sellers think.....”

And like clockwork – the broader S&P closed up  26 points or 1.08% on the day…..Funny how that works, no?   Once we pierced the all time highs of 2475 – it was ‘off to the races…’ not much else to say - it is what it is......

And today brings us TWO exciting events.....
 
The annual CNBC -  'Delivering Alpha' conference at the Pierre Hotel in NYC… - this event
kicks off at 8 am and will be hosted by my dear friend - Tyler Mathisen.  As  usual we can
expect to see and hear from the most important players in asset management/financial services
industry as they tackle some of  the most critical issues facing investors in today's economy. 
 
Participants include:  Stevie Mnuchin, (US Treasury Sec), Mary Callahan Erodes - (CEO at JPM
Asset), Marc Larsy - (CEO at Avenue Capital Group), Leon Cooperman -( Omega), Stevie
Schwarzman  - (Blackstone), Ray Dario - (Bridgewater), Jamie Dimon - (JP Morgan) , Julian
Robertson (Tiger Management), Jimmy Chanos (Kynikos)  and the list goes on…..

And at 1 pm est - it is the annual Apple Seasonal Fall Extravaganza - taking place at the brand new Steve Jobs theater located in Apple Park…………and since it is the 10th (symbolized by the Roman numeral X) anniversary of the Iphone’s launch - it is sure to be a must see TV event…….Now as much as the IPhones etc will be of interest - expect to see a very futuristic theater that is expected to draw as much attention as anything Timmy (Cook CEO) has to say……and he expected to announce a range of new Apple products - IPhones, IPads, Apple TV, new operating system, etc and is sure to tell us how we can’t live without all of it and the newest and greatest IPhone is only $1200!  (Do the math here and understand the kind of numbers Apple will report come the holiday shopping season.....)

The keynote kicks off at 10 am Pacific Standard Time (1pm for those of us on the east coast, 6 pm for those of you in London,  8 pm for the Russian 'hackers', 1 am(Wednesday) for those of you in Hong Kong & China, and 3 am ( Wednesday)  for those of you in Sydney, Australia.
 
As usual we can expect the audience to be filled with people that stand ready to cheer, clap, howl, and support anything Apple….….Any sense that Timmy has somehow disappointed Apple enthusiasts/junkies/traders & investors  will see the stock take a hit while every Oooohhh and Ahhhhh will surely send the algo’s into overdrive as the stock moves higher - The stock closed at $161.50/sh last night and is trading up $2 this morning at $163.20 - sounds like more Oooohs and Ahhhhhhs....……. .Here are the details for you to watch it/stream it live….
 
To watch the event live, head to this Apple page. 
 
(To watch the live stream, you'll need a iPhone,iPad, Mac (Safari only), Apple TV or
Windows 10 ($155.99 at Amazon.com) PC (Edge browser only).  Owners of second-, third- or
fourth-generation Apple TV set-top boxes can watch the keynote from the Apple Events
channel.)
 
There is no eco data today but later this week will provide us with some guidance on the state of our union. Look for PPI exp of +0.3% PPI ex food and energy of +0.2% tomorrow and on Thursday - watch for CPI of +0.3% and CPI ex food and energy of +0.2%, Friday brings us the Empire State Manf survey - exp of +18 and Retail Sales of +0.1%, ex autos of +0.5% and ex autos and gas of +0.3%, Industrial Production of +0.1% and Capacity Util of 76.8%. 

On the political and geopolitical front - we have a capital in crisis and we have a rogue nation continuing to hold the world hostage......

Have you noticed the number of GOP officials that are announcing retirement or are choosing to not run for re-election but return to the private sector?  - Dave Trott (MI), Charlie Dent (PA), Dave Reichert (WA) and Ileana Ros-Lehtinen (FL).   And these are only the ones that have made the decision - apparently - there are a handful more....and this leaves the Democrats foaming at the mouth - as they look to take back control in the mid-term elections.  So what does that say about reform?  Expect your taxes to go up and reform to be more choking.....

 I think the AP (Associated Press) headline read: 

"Republicans Jumping Ship Amid Dissatisfaction in Trump Era"

The article goes onto say that veteran Republicans are growing more disgusted with their own party as well as disgusted by the fact that Donny has no issues with confrontation and public humiliation.   Add in the fact that CBS's 60 mins wasted all of our time doing a Steve Bannon interview - giving that buffoon a platform to spew more hate while announcing new attacks on officials that he does not agree with  - Does it feel like a circus to anyone else - or is it me?

North Korea - now look - while all is quiet  on the 'Eastern Front' - that could just be temporary.....Last night the UN Security council did adopt new sanctions against North Korea and while those sanctions are not as strong as originally expected - Nikki Haley did say that the final ones 'will cut deep'  and while we are not looking for war - we are saying that the world will not accept a nuclearized North Korea.   Now what is key here is that both China and Russia - economic and political allies of NK have endorsed these new sanctions because Chubby keeps violating the UN councils resolutions banning him from conducting nuclear and ballistic missile tests.   The hope is that we find a diplomatic solution - so as long as we move in that direction - then the angst should subside and the mkts will focus on long term global macro issue that ultimately end up pricing stocks.... - but if Chubby should launch / test another missile again - he will raise the stakes and ignite the nervousness again.

US futures are up another 3 pts in pre-mkt trading - giving credence to the fact that 'new highs beget new highs...'  and now that we have made those highs - there is NO official resistance above....A trend line would suggest 2510 ish...but at this point - it's a free for all......because nothing is making much sense at the moment....

Global mkts are all higher on as the optimism permeates global investors and so much of the noise has quieted down.  Japan + 1.18%, Hong Kong + 0.06%, China + 0.32$%  and ASX + 0.58%.

In Europe - those mkts are responding in kind....all up about 1/2% in response to the 'all time highs' made yesterday in the states.  British lawmakers vote in favor of the timetable to discuss 'severing ties' with the Euro Zone post Brexit.   Banks, Insurances, Financial Services all higher....FTSE + 0.62%, CAC 40 + 0.66%, DAX + 0.57%, EUROSTOXX + 0.61%, SPAIN + 0.35% and ITALY + 0.3%.
 
Take good care -



KP

Pork Tenderloin W/Apples 

The chatter today will be all about Apple - so........As Apple is making news headlines around the world - it seemed only appropriate to include a recipe that takes advantage of Apples......So try the PorkTenderloin (you can also use thick cut pork chops on the bone if you prefer) 

You will need:  Pork Tenderloin (or the thick cut chops), olive oil, Dijon mustard, lg white onion,  peeled & sliced Apples (I like the red delicious - but many use Granny Smith's) and White wine.....

Preheat the oven to 450 degrees.....season the pork with s&p...

Now in a sauté pan that you can put in the oven - not a teflon coated one....heat up olive oil....add the pork tenderloin or the chops....brown on all sides - maybe like 5 or 8 mins.....remove and set aside.  When it cools down a bit - rub the Dijon mustard into the pork....(do not overdo it).  Now add a bit more oil to the pan.....add in the sliced onions and sliced apples....sauté for about 5 mins.... now spread around and re-introduce the pork to the pan..... 

Now put the pan in the oven and roast for about 15 mins max...(if using chops - maybe 10 mins max) - remove from oven, now remove the pork only and cover with foil.....Next add white wine to the pan and turn up the heat - cook for 3 mins or so.....turn off the heat. 
If using tenderloin - then slice liberally into thick pieces.  Arrange a bed of onion/apple mixture on the plate and delicately place the porkon top.  Serve immediately with a mixed green salad dressed in anApple Vinaigrette dressing....

Dressing:  Dijon mustard, apple juice, apple cider vinegar, olive oil, s&p.  ......bring  the apple juice  to a boil and then remove from heat...let stand.  In a bowl add Dijon mustard, the apple vinegar and s&p...whisk.  Now add the cooled apple juice and olive oil - making sure to keep mixing as you fold into the bowl.  Done.  Dress the salad - open a bottle of wine.....invite your guests to the table. 

  
Buon Appetito.