One Of Wall Street's Best Minds Just Said This About The Markets (And Winter Storm Juno)

The following are highlights from Kenny Polcari's morning note. He can be found on Twitter @KennyPolcari:

On Winter Storm Juno: "So - what of this BIG storm to hit NYC? DUD! Made a right hand turn and went out to sea in the mid evening and left us with maybe 4 inches....Boston on the other hand got walloped - but #Bostonstrong will pick themselves up and move ahead...."

On Tuesday's pre market activity: "US futures are down 20 pts - clearly breaking thru what should have been support at the 50 dma (2045).....Disappointing earnings from United Technologies Corporation UTX last night and concern over Caterpillar Inc. CAT and what that says about the broader economy is all the rage. Again - I think it is an overreaction - but in a negative environment - it is easy once again to pile on. We are now once again in the 20010/2050 trading range and will most likely remain here until we hear from the FED tomorrow."

On Greece: "The weakest performances on the Greek mkt were banks and financials as the possibility of Greece leaving the euro does create a fairly strong incentive for depositors to take their money out of the country. Although a possibility - it remains unlikely......and the ability of PM Tsipras to control Parliament will surely be curtailed given that his party didn’t win an overall majority. Syriza won 149 seats in the 300 seat parliament and so has now formed a coalition government. In what was a bit of a surprise move Syriza (left wing) joined hands with the right wing Independent Greeks who won 13 seats. This move does gives Tspiras a comfortable majority but it also gives him a split political stance."

Both the Independents and Syriza campaigned against the onerous austerity demands - so expect the first thing he will try to do is tackle the debt burden. Tsipras has said that he wants to negotiate vs fight with the international lenders - that's a plus.....and he will probably get it, but do not expect Germany to bend over (again) after giving in to the ECB QE program. Germany has said that it is not willing to renegotiate the terms of Greece’s bailout. ( For anyone looking for yield try a Greek bond - the 10 yr currently yielding nearly 9% while three-year bonds rose to 10.89%.)

On The Fed: The question is - What will the FED say about the newly launched 1 Tril Euro - European QE program . Look - as a result US goods are going to get more expensive abroad as the dollar continues to strengthen vs the weakening Euro. Will they address this point? I don't think so....I think that they will stick to the US story of improving recovery and growth...

"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”

Image credit: Eva K, Wikimedia