spxs

Scientists discover hidden galaxies behind the Milky Way
Perth, Australia (SPX) Feb 10, 2016
External image
Hundreds of hidden nearby galaxies have been studied for the first time, shedding light on a mysterious gravitational anomaly dubbed the Great Attractor. Despite being just 250 million light years from Earth - very close in astronomical terms - the new galaxies had been hidden from view until now by our own galaxy, the Milky Way. Using CSIRO’s Parkes radio telescope equipped with an innova
Full article
Site of Martian lakes linked to ancient habitable environment
Tucson AZ (SPX) Feb 10, 2016
External image
Groundwater circulation beneath a massive tectonic rift zone located along the flanks of some the solar system’s largest volcanic plateaus resulted in the formation more than 3 billion years ago of some the deepest basins on Mars, according to a new paper by Planetary Science Institute Senior Scientist J. Alexis Palmero Rodriguez. These basins could have been episodically covered, perhaps
Full article
Galactic Space Oddity Discovered
Tokyo, Japan (SPX) Feb 10, 2016
External image
An international team of researchers led by Aaron Romanowsky of San Jose State University has used the Subaru Telescope to identify a faint dwarf galaxy disrupting around a nearby giant spiral galaxy. The observations provide a valuable glimpse of a process that is fleeting but important in shaping galaxies. “The outer regions of giant galaxies like our own Milky Way appear to be a jumble
Full article
The Year of the Monkey? Oh Boy...  Try the Turkey Meatloaf

**US FUTURES ARE GETTING CREAMED IN EARLY TRADING - CURRENTLY DOWN 22 PTS AT 7 AM*** (This is a developing story - read on)

So it appears that February may be a repeat of January…Friday was another tough day for stocks - and only got worse as the day progressed.  The mkt gave back most of the gains from the last two weeks…. Tech stocks got walloped as concerns over growth are now infecting one of the ‘best performing’ sectors to date.  And I say that a bit sarcastically because prior to Friday - the Tech sector as a group was ONLY down about 6% ytd - this compared to the beating in Financials -9% ytd, , Healthcare -11% ytd, , Consumer Discretionary -10.5% ytd & Energy -9% ytd - the only sector in positive territory is Utilities - currently up 7% ytd - and this makes perfect sense.  

Michael Hewson - Chief Mkt Analyst at CMC Markets - laid it out this way:

“It appears that softening economic data and disappointing earnings reports are contributing to a negative feedback loop”  - Do you THINK?

The XLK – (Spider Technology Sector ETF) dropped 2.5% and is now down 9% ytd.  The FANG stocks got beaten up like nobody’s business – FB -2.5%  (ytd -8.5%),  AMZN –5% (ytd – 25%), NFLX –6% (ytd -27%) & GOOGL -2.8%  (ytd – 11%) , which put pressure on the sector sending the Nasdaq lower by 3%.  All the action clearly reflective of investor caution - as the economy slips into what can best be described as 'murky’ at best…..   And the NFP (Non Farm Payroll) report – Wellllll, not what it is all cracked up to be….

The report showed a gain of 151k jobs – well below the estimate of +200k but right on the low end of the range -vs. the downwardly revised December number of +262k jobs. The kicker is that the gov’t then told us that the Unemployment rate dropped to 4.9%….Hello?  How does that even make sense?  This is one stat that makes me nuts….……it ignores those people who have given up, and fall off the radar – thus are no longer counted. (That number today is close to 100 mil people).  The stat that  investors should be focuses on is the U6 – or the UNDEREMPLOYMENT RATE – and that is and has been stuck at 10% for months now. 

[The underemployment rate is a measure of people that are unemployed as well as ‘not fully employed’ –part time that want and need to be full time].

Now while the gov’t recognizes this fact, it doesn’t do them any good to report a 10% number after all the time and accommodation that they FED has done – so it is easier to report the lower number – as it makes them all feel good and they can pat themselves on the back - especially during the Presidential Election Season - because while it may not be completely reflective of the environment – it is surely a much better indicator than the widely accepted U3 rate of 4.9%.   

And wages?  Oh yeah- they inched higher as well – climbing 0.5% in average hourly earnings to $25.39 – marking the second best ONE month gain since 2010 – but before you run out and celebrate – remember that first -  January marks the new year and the increase most often reflects that ‘cost of living’ adjustment.  Second that the ‘minimum wage’ rose in 14 states – most now hover at or above $8/hr…. (NY is now $9/hr while California and Massachusetts are at $10/hr and  DC - well they are the highest at $11.50/hr - I mean how could they not be? ).  Third – the declining unemployment rate appears to be causing some employers to pay more to attract the ‘declining availability’ of qualified workers…And this set off the alarm bells once again about what the FED will do now….I mean with all of this ‘robust’ job and wage data surely the FED will have to raise rates sometime soon!  So - the declining broader macro data means nothing to the overall health of the economy?

The year of the Monkey -

China and other parts of Asia are welcoming in the 'Year of the Monkey’ - and how appropriate - considering all of the Monkey Business that is taking place. Misleading macro data, currency devaluations, mkt regulation changes on the fly, Growth rates that can’t be verified etc….. Japan and Australia were the only two mkts that were open overnight - and while there was no significant news - Japan did manage to rally 1% as that mkt center also thrashes around looking for stability.  Expect volumes to be below average until all of the regional mkts come back online as the week progresses. Mkts in China and Taiwan are closed all week - while Hong Kong, South Korea, Singapore and Vietnam will re-open on Tuesday.  

In Europe - Stocks again are under pressure….hitting lows not seen since October 2014!  All mkts down 2+% as many assume that Friday’s NFP reports suggests an imminent rate hike….it is that 4.9% unemployment rate and the wage growth that has everyone’s panties in a bunch….again - it’s all in the presentation…..if that is all you focus on - then yeah….you can’t come to any other conclusion - but if you look at the broader picture - it makes no sense at all……add in the technology beating and it is hard to see how you can possibly spin a positive story - right now.  FTSE -1.6%, CAC 40 -2.14%, DAX - 2.3%, EUROSTOXX  -1.94%, SPAIN -2.3% AND ITALY -1.3%.  

US futures are getting CLOBBERED - Currently down 22 pts at 1853…..My sense is that no one really believes Friday’s report - but it is what it is- which now puts rates right back in focus for some…..(I am not in that camp at all)  …..and while it did NOT 'blow the roof off the house’.….it does have the ability to 'blow the foundation out from under’…….and that is what it feels like right now……If futures remain under pressure until the 9:30 am bell- then look for the mkt to immediately test the Aug/Sept lows of 1850 and if that fails - then a re-test of the October 2014 & January 2016 lows of 1820 is in clear sight……The failure of 1820 - could then see a swift move to 1750 - as the SELL algo’s kick in and the BUYERS retreat…..But even here we will not be in BEAR mkt territory for the broader mkt - as that would  represent a 17% decline off the 2015 highs -  the BEAR breaks down the door at 1700.  

This week we are focused on Janet Yellen and her Humphrey Hawkins bi-annual testimony to Congress.    [The Full Employment and Balanced Growth Act - now known as Humphrey Hawkins Full Employment Act - was instituted in 1946]  This act encourages the Federal Gov’t to pursue 'maximum employment, production and purchasing power’ and it uses the power of Keynesian theory to achieve the goal.  Keynesians - assert that the gov’t can minimize the effects of economic shock by compulsory spending - which tend to create temporary jobs and maintain and inflate investments due to this gov’t spending…….HELLO????     Can you say DISASTER?  Keynesian is clearly NOT working…How about we start cutting taxes across the board and create incentives for companies and small businesses to grow?  

Anyway - Janet will appear before the Senate on Tuesday and then the House on Wednesday….to bring the country up to date on the health and strength of our economy and the economic recovery….You can bet that everyone will be trying to read between the lines as she speaks…looking for any hint on the direction or thinking of the FED.  Beyond that - look for Retail Sales to be the big macro driver on Friday… as it speaks directly to the consumer…..

 Take good care.

 Kp

 Turkey Meatloaf

Turkey Meatloaf……easy, healthy and good for you.  But you know Turkey meatloaf can be boring…..well - try this one….You can make this with beef or chicken also…but try the Turkey - it’s good for you.

 For this you need:  2 lbs of ground turkey, 2 eggs, fresh grated Romano cheese, minced garlic, chopped Vidalia onion, grated carrot and celery, tsp of basil pesto, splash of white wine, slice of Italian bread soaked in milk, chunks of provolone, s&p.

 Preheat the oven to 375.

 Combine all the ingredients and place in a greased loaf pan or casserole dish. Place in the oven and cook for about 75 mins…

 **While this is cooking - take some jarred roasted red peppers in garlic and oil and blend in the food processor.  Top the turkey loaf with the red peppers and continue to cook long enough to heat….maybe an add'l 5 mins or so.

 Remove - and serve with a mixed green salad.

 Buon Appetito

 “The market commentary is the opinion of the author and is based on decades of industry and market experience; however no guarantee is made or implied with respect to these opinions. This commentary is not nor is it intended to be relied upon as authoritative or taken in substitution for the exercise of judgment. The comments noted herein should not be construed as an offer to sell or the solicitation of an offer to buy or sell any financial product, or an official statement or endorsement of O’Neil Securities, Incorporated or its affiliates”

youtu.be
How To Day Or Swing Trade SP 500 Stock Index In 2016 Like A Master Part One
Know how to quickly strengthen your SP 500 stock index trading and investing trading strategies throughout this year 2016. Begin to learn and master the most...

Know how to quickly strengthen your SP 500 stock index trading and investing trading strategies throughout this year 2016.
Begin to learn and master the most influential key support and resistance levels where professional are more likely to enter or exit the stock
market (SP 500).

Trade SPX Index Like A Pro.

Arianespace to launch two ViaSat high capacity satellites
Paris, France (SPX) Feb 10, 2016
External image
Arianespace and ViaSat Inc., a global broadband services and technology company, have contracted for the launches of ViaSat-2 and a ViaSat-3 class satellite. Both ViaSat-2 and ViaSat-3 class satellites are geostationary satellites and operate in the high capacity Ka-band frequencies. ViaSat-2 and ViaSat-3 will each weigh approximately 6,400 kg at launch, and will be injected into geostatio
Full article
The Viagra Effect?  Try the Buccatini w/Prosciutto & Leeks

Picture this:  The Kennedy Center - Washington DC -

 Janet Yellen takes center stage preparing for her first concert of 2016.  In  the audience are a range of global central bankers - Uncle Mario (Draghi) - The ECB (European Central Bank),  Haruhiko Kuroda - the BoJ (Bank of Japan), Zhou Xiaochuan - the PBoC (Peoples Bank of China), Stefan Ingves - Riksbanken (Sweden), Lars Rohde - NationalBanken (Denmark), Steven Poloz - Canadian Central Bank along with the bankers from emerging mkt countries as they all consider the additional drastic steps needed to turn their economies around.  In the audience are also  other members of the FED and a host of global investors.  As she comes on stage - Madonna’s ‘Celebration’ plays in the background…… global mkts are surging on news that the BoJ launched a new and more dramatic stimulus program last week after two lost decades.  The music wanes and the crowd applauds  - and a new song begins…..

 And the song? ………the Janis Joplin classic - “Piece of my Heart…”. You know it - and if you don’t know it - feel free to YouTube it….. (I have given you the introduction - but no one does it like Janis Joplin)

 “Oh, come on, come on, come on, come on… Didn’t I make you feel like you were the only man - yeah! An’ didn’t I give you nearly everything that a woman possibly can ? Honey, you know I did! And each time I tell myself that I, well I think I’ve had enough,But I’m gonna show you, baby, that a woman can be tough. I want you to come on, come on, come on, come on and take it, Take another little piece of my heart now, baby!  Oh, oh, break it!  Break another little bit of my heart now, darling, yeah, yeah, yeah. Oh, oh, Have another little piece of my heart now, baby……”,

 Can you hear her now?  She grabs the mike and belts it out……Singing to these men as they did just that….they stole just another little piece of her heart (by launching new/improved stimulus programs)  and then they broke it all over the global mkts…- making it more difficult for the FED to move on rates - and why?  Because the message being sent by those global banks is - “Houston?  We’ve had a problem!”  …suggesting that economies around the world are contracting -and that is not what Janet or the FED wants to hear…..so you ask - why doesn’t she just block her ears? - Well - she and Cousin Stanley (Fischer - Vice Chair) have been doing that for quite some time now …..and now it’s coming back to bite her in the ….. (fill in the blank)

 [And for those of you NOT old enough  to remember that famous quotation -  Those were the words uttered by Commander Jim Lovell - On April 13th, 1970  during the famed Apollo 13 spaceflight when an oxygen tank exploded and ripped off the side of the spacecraft service module while these men were in orbit approximately 205,000 miles from Earth on their way to the Moon – the world was held in suspense as these men hobbled together duct tape, paper clips and straws in an attempt to 'repair’ the spacecraft and return safely to Earth…..fearing that if they were unsuccessful - they would be lost forever - hurtling thru space going who knew where……..In the end though those men succeeded using the duct tape and paper clips allowing them to keep it together and land the spacecraft in the vast Pacific Ocean near Samoa.]

 Sound somewhat familiar?  Are we just hurtling thru space - seemingly out of control?  Is the  FED trying to hold it together with paper clips and duct tape…?  

Ok - back to the mkts…..Stocks soared on Friday on the news that Japan didn’t just CUT interest rates - they have now gone NEGATIVE after 2 lost decades (joining a host of other nations)….sending global stocks into overdrive…..  The rally was a knee jerk reaction to Japan’s surprise decision to introduce negative interest rates for the first time in their history.  

 Neg­a­tive rates are a funny thing, right?  They do succeed in dri­ving down the cur­ren­cies of those nations, which helps to boost in­fla­tion and ex­ports….but this comes at the ex­pense of other coun­tries, which then causes those other countries to respond in kind with eas­ier monetary pol­icies of their own.  (Remember the vicious circle?)

 I mean - take China……5 months ago - the PBoC’s de­ci­sion to de­value the Yuan was dri­ven in part by their need to lower its own in­ter­est rates to stim­u­late growth. The lower Yuan, then put pres­sure on all of Chi­na’s trad­ing part­ners, in­cluding Japan, to ease mon­etary pol­icy. And the result - investors swiftly re-priced risk assets……setting off global turmoil as the game played out. On Friday - we saw that Citigroup econ­o­mists are now  pre­dicting that many of the world’s central banks would cut their rates even fur­ther into neg­a­tive ter­ri­tory in coming months, “should macro­economic con­di­tions turn out even weaker than cur­rently expected.”

 This move by the BoJ sent Yogi (the Bear) running for cover as algorithms tripped over each other sending the Dow and S&P up 3.6% and 2.4% respectively as they attempted to  cover short bets before the gains disappeared. And once again, we see that the catalyst that caught everyone  by surprise was another temporary fix….more on that below….

 Ok - for Joe Q Public - what does that mean? Well, it means that if banks have reserve balances at the central bank (BoJ)  then they will HAVE TO PAY the central bank for the privilege of having cash - they will no longer be paid interest on their deposits and potentially neither will depositors at local and regional banks. (Do you see where this is going?)

 The logic behind this thinking?  Force people to take their money out of the bank and spend it -   Forcing inflation to rear its UGLY head…..but here is the rub…… when an economy is booming and people are working and earning and spending money, then inflation is a NATURAL byproduct of too much money chasing too little supply.  The stimulus is the expanding economy, But when they try to FORCE  inflation using a form of 'artificial stimulus’ in a contracting economy it usually spells disaster.  (Think the 4 QE programs initiated by the FED).

 Nevertheless, this is apparently how all of these Ivy League central bankers think – if it doesn’t happen naturally - then force it……I call this the  'Viagra effect’……take 'an economy’ that is in contraction mode, give it a little 'blue pill’ and force a 'short lived but pleasurable reaction’ while ignoring the longer term cause.    This has been proven many times to be a failed strategy - all it will do is force money out of the bank (safe haven) as it searches for yield temporarily causing stocks to move higher. It doesn’t cause consumers to spend money - in fact it causes concern which only forces consumers to SAVE money…..as they expect tougher times ahead.

 Many analysts/strategists and long term asset managers do not suspect that this latest move will be the catalyst for an extended rally- unless of course it is accompanied by structural fiscal reforms that will boost investment and confidence - moves that our elected officials refuse to consider……Now artificial stimulus programs may cause the mkt to rally a bit more from here but this will only cause some to suggest that  'if it lasts longer than 4 hrs - see a doctor……’. In the end, we all know that the effects of this 'artificial stimulus’ DO wear off and we find that the 'economy’ returns to its contractionary mode.  Look!   the Kool Aid doesn’t cut it any­more…

Global growth fore­casts are be­ing cut and finan­cial mkts are reeling as slow­downs in an array of economies raise the warning flag….. and this creates an even more difficult situation for cen­tral bankers who are already push­ing the limits of the exhausted mon­e­tary pol­icy debate.

 Ok…back to the charts….if you draw a trend line on the S&P -  from the lows of Aug/ Sept/Oct and drag it across - you will find that Friday’s action took us up and thru what should have been resistance at 1920……- but the hysteria on Friday caused the algo’s to run wild breaking up and thru ending the day at 1940.  This suggests a further move upwards to the 1975/2000 range is in short order if we hold. If we do not hold  then a retest of 1875 would not surprise me….and if the macro data continues to weaken then a retest of the January lows of 1820 is a good bet.  

 On the earnings front - Earnings continue to come in as expected…with 70% of the reports beating the estimate.- never mind that these estimates have all been slashed prior….and many companies have supported their earnings with healthy share buybacks. We have another big week of earnings ahead of us still and I fully expect more of the same…  

 Trading this week will also be driven by investor and algorithmic reaction to some key U.S. economic data, especially Friday’s NFP (Non Farm payroll Report) of +190k.  Ahead of that report we will see reports on ISM manufacturing with two very different estimates:  Markit is calling for 52.7 while the ISM is calling for 48.5 (one is expansionary while the other reflects contraction),  The services component suggests expansion at 55.2.  Personal income +0.2% and spending +0.1%, as well as the ADP Employment report of +190k jobs.  

 And don’t forget the Iowa Caucuses today…..Hopefully by tonight the field will be a little thinner….as those Americans do the hard work of culling the field for the rest of us……

 Overnight in Asia - Mkts  mixed -  Japan +1.98%, Hong Kong -0.45%, China - 1.78% and ASX +0.76%.   In China - macro data shows continued weakness in the manufacturing sector - with PMI notching 49.4 (contractionary).  But the overall impression is that this report is beginning to show some level of stabilization in China while maintaining that risks still remain.  Which means what exactly?  Maybe the mkt will go up or maybe it will go down?

 Evan Lucas - Mkt Strategist at Spreadbetter IG had this to say:

 "The BoJ’s move is a net positive for risk, net positive for international trade and increases fund flows in Asia.  All are seen as a macro positive"

 In Europe - Mkts are moving lower as the world continues to digest the latest BoJ move.   HSBC announces 8k layoffs (plans to slash 1 out of 5 jobs), is freezing global pay for 2016 and shrinking it investment bank by 1/3rd in response to sluggish global growth and strangling regulation as they continue to cut costs to drive profitability…………FTSE -0.39%, CAC 40 -0.56% , DAX - 0.51%, EURSTOXX -0.72%, SPAIN flat, and ITALY-0.37%

 US futures are DOWN 7 pts this morning as investors/traders settle in for another week and digest Friday’s rally.  Oil is a bit lower this morning - on what feels like profit taking after its surge as well.   Look for the S&P to test what is now support at 1920, if it holds then we can breathe a sigh of relief - if not - strap in again.  

 Take good care.

 Kp

Buccatini  w/Prosciutto and Leeks.

Today we are serving up a great pasta dish….for this you can use almost any type of long pasta - spaghetti, buccatinie, fettuccine or even tagliatelle. (I would not use cappellini though - it gets clumpy)   This dish is easily prepared and created.  For this you need to make a Béchamel sauce first - so here it is:  You need 1 cup whole milk, 2 tablespoons butter, 2 tablespoons all-purpose flour and a dash of salt. 

In a small saucepan, heat milk over medium-low heat; bring just to a boil and remove from heat. In a medium saucepan, melt butter over low heat. Add flour and cook, stirring constantly with a wooden spoon for 2 minutes. Do not brown. Add milk to flour mixture, stirring constantly until milk is incorporated. Cook, stirring frequently, especially along corners of pan, until sauce is the consistency of a thick cream, about 5 minutes. Stir in salt and remove from heat.

Next bring a pot of salted water to a rolling boil. 

For the main dish you need:  butter, olive oil, 2 medium leeks, chopped - trim the bottom and the top off and then use the stalk , ¼ pound thinly sliced prosciutto, cut into thin strips, s&p, chopped fresh chives

On medium heat melt the butter and a splash of oil in sauté pan.   Add leeks and cook, stirring occasionally until softened, about 4 minutes. Add prosciutto - sauté for a couple of mins and then and béchamel and mix.  Remove, cover and keep warm.

 Add the pasta to the water and cook until al dente - maybe 8 mins….Strain - always reserving a mugful of the water.  Toss the pasta into the sauté pan with the leek sauce and stir to combine.  If you need to add a bit of the water - do so now to keep it moist.   Add chives, toss and serve immediately.  I always like fresh parmegiana with any pasta dish…so always have that at the table for your guests to enjoy. 

   Buon Appetito

 “The market commentary is the opinion of the author and is based on decades of industry and market experience; however no guarantee is made or implied with respect to these opinions. This commentary is not nor is it intended to be relied upon as authoritative or taken in substitution for the exercise of judgment. The comments noted herein should not be construed as an offer to sell or the solicitation of an offer to buy or sell any financial product, or an official statement or endorsement of O’Neil Securities, Incorporated or its affiliates”

“A Risograph Dream”

My overall goal is to create a small company where I can print and publish artist in Richmond Va. The talent here is remarkable and I want to be able to give the artist here a chance to make small press books. Just a bit of backtracking, “a Risograph Printer is a simple yet brilliant tool for anyone interested in producing high quality prints on a shoestring budget. It is environmentally quick & easy to setup. Riso printing also use soy based inks. Riso printing relies on a layering technique to produce multicolored prints. From holiday cards to full comics; there are almost endless possibilities with this astonishing printer.”

This opportunity would be a help not just to me but to artist in the area who want to get really interesting stories printed. I was first introduced to the Risograph 2014 SPX when I picked up Sam Aledn’s comic “Hallow” and I was blown away instantly. That sparked my interest in creating such beautiful work and printing it on that machine. It was only until I was introduced to Youth in Decline when I knew, I wanted to step my foot in small publishing. That’s where this journey began. I say all of that so you can get a simple background on how this dream was started.

So, comes to our current situation, we are in the last quarter of this journey! I extended the final date to Monday February 8th! Monday February 8th 2016! Spread the word and let’s make this dream come true! Everyone I say this with so much love, thank you for everyone who’s taken part of this journey!

4 more days! Let’s get it!

“A Risograph Dream” LINK HERE!

Caltech researchers find evidence of a real ninth planet
Pasadena CA (SPX) Jan 21, 2016
External image
Caltech researchers have found evidence of a giant planet tracing a bizarre, highly elongated orbit in the outer solar system. The object, which the researchers have nicknamed Planet Nine, has a mass about 10 times that of Earth and orbits about 20 times farther from the sun on average than does Neptune (which orbits the sun at an average distance of 2.8 billion miles). In fact, it would take th
Full article
youtube

Cold Specks - The Mark (2013)