Hello class! Here is today's LandColt Trading Wake-Up Call for Tuesday, January 31st. As always, feel free to forward to a friend. And, be sure to sign-up for your own FREE subscription by sending an email to info@LandColtTrading.com with the word 'SUBSCRIBE' in the subject line.
Time To Forgive and Forget Greek Debt?
By: Kenneth Polcari, Expert Contributor
Today promises to be a busier day – at least from a news perspective. The airwaves will be hit with earnings announcements and global macroeconomic announcements…appears that risk 
appetite is back on today with futures +6, Gold +10 and a firmer Euro in early morning trade.
We are trending at 1315, still stuck in the 1300/1325 range - back and forth, back and forth. Mkt consolidating getting ready for the next move; the question is which way will that move be?
We have seen a 15% move up from the November lows of 1158. Since mid-December, we have not had any significant pullback. A 23.6% Fibonacci retracement would take us to - 1297! Bingo, isn't that where we bounced off of yesterday?
Indeed it is! Fibonacci levels to watch - 1297, 1274 and then 1256 - representing a 50% retracement on the upside - 1325.
On the corp. side we will hear from the likes of: LLY (Eli Lily) 0.81 cts, XOM (Exxon) $1.98, UPS $1.25, CIT 0.04 cts, ETR (Entergy) 0.89 cts, MAT (Mattel) $1.00, BXP (Boston Properties) $1.19, AMZN 0.16 cts, VLO (Valero Energy) -0.11 cts, PFE (Pfizer) 0.47 cts AND X ( US Steel) -0.85 cts…a broad range of companies that should offer a bit more insight into a range of sectors and the health of the US economy.
From an international perspective – we are getting all kinds of macro data from our friends around the world: Japan housing starts, Germany – retail sales and unemployment, France – producer prices and consumer spending, Hungary to report unemployment and Spain to report CPI, Italy is next to report unemployment, followed by the ECB which will report on regional unemployment.
Then off to Latin America where we see Brazil release industrial production while Chile reveals latest unemployment. Canada jumps in the mix and reports monthly GDP.
In the US – we are expecting Case Shiller housing index - exp are for a 3.3% decline in housing prices, and US consumer confidence. To close out the day – we move back to Asia and get South Korean consumer prices.
Don’t expect any of this though to offer any REAL direction for the mkts. We (global mkts) will continue to be HELD HOSTAGE by Hercules, Aphrodite, Apollo, Hermes, Prometheus, Athena, Zeus and Poseidon…and Lucas Papademos as he discloses that he cannot “exclude the possibility that his country will need more help – on top of the new $170 bil bailout and a deal with private investors to slash its debt”.
Get a load of this – “it’s too early now to say whether we will need some extra public funding…”; and this morning there is no word on a deal because as it is being reported - was NOT ON THE AGENDA TODAY. Not on the agenda??? Have they lost their minds?
The warning was clear 3 yrs ago – Greece was a time bomb waiting to explode. In mid-2009, a draft report from the IMF sounding the alarm bell was squashed as it exposed the Greek situation
for what it was.
Greece was unhappy with having their pants pulled down and went to the IMF to complain. The final report, though critical, was not honest about the risks that Greece might one day default – taking Europe down the drain with it, and potentially the global economy.
It is exactly this pattern of denial that brings Greece (and Portugal, Ireland, maybe Italy and Spain too) to the brink while the Euro zone struggles to survive, all the while holding the rest of the world in suspense.
Overnight in Asia - mkts cautious...as they lie in wait: Japan +0.2%, Hang Seng +0.7%, China +0.2%, ASX -0.3%.
In Europe - mkts are once again in rally mode. All mkts currently showing +1% gains. Angela claiming success on moving Europe closer to a fiscal union, Optimism that the Greek Gods will convince investors to take the hit, German unemployment better than expectations. Both Italian and Euro zone unemployment higher than expectations, but the mkt is ignoring.
Futures are +8 again - churning and consolidating. Earnings today represent companies so heavily weighted in the averages that good news will cause the avgs to move higher as any significant moves in these blue chip companies (will cause a feel good mood in those industries) creating an exponential move in those avgs.
So far, about 80% of industrials, tech, healthcare, materials, are beating estimates: 60% of energy, financials, cons discretionary, utilities and telecom are missing estimates; forward guidance has been neutral to negative. Do not forget - Grease! is still the word.
Take good care –
KP
Tiri Saganaki me Tiganita Avga – it’s all Greek to me……
Greek Fried Cheese– the way this is going – forget the meat and fish….you might have just enough money to buy some Gruyere Cheese……and a dozen eggs….
You need 6 eggs, Gruyere Cheese, 1 cup of flour and some olive oil.
Mix the flour with 2 beaten eggs to make a kind of paste. Now take the cheese pieces and dip in water and then the flour mixture….Set aside until all the cheese is coated.
Now in a frying pan – heat up some olive oil and fry the cheese…do not let it melt…just enough so that it is golden brown. Remove and set aside…now fry up some eggs and you are done!
Fried eggs and cheese…..The Greek version of "Green eggs and Ham" !
Enjoy -
We are trending at 1315, still stuck in the 1300/1325 range - back and forth, back and forth. Mkt consolidating getting ready for the next move; the question is which way will that move be?
We have seen a 15% move up from the November lows of 1158. Since mid-December, we have not had any significant pullback. A 23.6% Fibonacci retracement would take us to - 1297! Bingo, isn't that where we bounced off of yesterday?
Indeed it is! Fibonacci levels to watch - 1297, 1274 and then 1256 - representing a 50% retracement on the upside - 1325.
On the corp. side we will hear from the likes of: LLY (Eli Lily) 0.81 cts, XOM (Exxon) $1.98, UPS $1.25, CIT 0.04 cts, ETR (Entergy) 0.89 cts, MAT (Mattel) $1.00, BXP (Boston Properties) $1.19, AMZN 0.16 cts, VLO (Valero Energy) -0.11 cts, PFE (Pfizer) 0.47 cts AND X ( US Steel) -0.85 cts…a broad range of companies that should offer a bit more insight into a range of sectors and the health of the US economy.
From an international perspective – we are getting all kinds of macro data from our friends around the world: Japan housing starts, Germany – retail sales and unemployment, France – producer prices and consumer spending, Hungary to report unemployment and Spain to report CPI, Italy is next to report unemployment, followed by the ECB which will report on regional unemployment.
Then off to Latin America where we see Brazil release industrial production while Chile reveals latest unemployment. Canada jumps in the mix and reports monthly GDP.
In the US – we are expecting Case Shiller housing index - exp are for a 3.3% decline in housing prices, and US consumer confidence. To close out the day – we move back to Asia and get South Korean consumer prices.
Don’t expect any of this though to offer any REAL direction for the mkts. We (global mkts) will continue to be HELD HOSTAGE by Hercules, Aphrodite, Apollo, Hermes, Prometheus, Athena, Zeus and Poseidon…and Lucas Papademos as he discloses that he cannot “exclude the possibility that his country will need more help – on top of the new $170 bil bailout and a deal with private investors to slash its debt”.
Get a load of this – “it’s too early now to say whether we will need some extra public funding…”; and this morning there is no word on a deal because as it is being reported - was NOT ON THE AGENDA TODAY. Not on the agenda??? Have they lost their minds?
The warning was clear 3 yrs ago – Greece was a time bomb waiting to explode. In mid-2009, a draft report from the IMF sounding the alarm bell was squashed as it exposed the Greek situation
Greece was unhappy with having their pants pulled down and went to the IMF to complain. The final report, though critical, was not honest about the risks that Greece might one day default – taking Europe down the drain with it, and potentially the global economy.
It is exactly this pattern of denial that brings Greece (and Portugal, Ireland, maybe Italy and Spain too) to the brink while the Euro zone struggles to survive, all the while holding the rest of the world in suspense.
Overnight in Asia - mkts cautious...as they lie in wait: Japan +0.2%, Hang Seng +0.7%, China +0.2%, ASX -0.3%.
In Europe - mkts are once again in rally mode. All mkts currently showing +1% gains. Angela claiming success on moving Europe closer to a fiscal union, Optimism that the Greek Gods will convince investors to take the hit, German unemployment better than expectations. Both Italian and Euro zone unemployment higher than expectations, but the mkt is ignoring.
Futures are +8 again - churning and consolidating. Earnings today represent companies so heavily weighted in the averages that good news will cause the avgs to move higher as any significant moves in these blue chip companies (will cause a feel good mood in those industries) creating an exponential move in those avgs.
So far, about 80% of industrials, tech, healthcare, materials, are beating estimates: 60% of energy, financials, cons discretionary, utilities and telecom are missing estimates; forward guidance has been neutral to negative. Do not forget - Grease! is still the word.
Take good care –
KP
Greek Fried Cheese– the way this is going – forget the meat and fish….you might have just enough money to buy some Gruyere Cheese……and a dozen eggs….
You need 6 eggs, Gruyere Cheese, 1 cup of flour and some olive oil.
Mix the flour with 2 beaten eggs to make a kind of paste. Now take the cheese pieces and dip in water and then the flour mixture….Set aside until all the cheese is coated.
Now in a frying pan – heat up some olive oil and fry the cheese…do not let it melt…just enough so that it is golden brown. Remove and set aside…now fry up some eggs and you are done!
Fried eggs and cheese…..The Greek version of "Green eggs and Ham" !
Enjoy -
