detour

SPX Reaching Historical Extremes on Weekly/Monthly Chart

We are starting to see some very extreme readings on our monthly and weekly index charts since there has been no correction this year.  I posted below first the monthly chart of the S&P 500 going back 15 years showing bollinger bands – rarely do we get above the upper monthly one, and never have we been this far above during this time frame.  Then below that I posted…

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cycle

There is a Rotation Afoot

After breaking a key support trend line that connected the lows of November, December, February and April the S&P 500 has pulled off yet another "V shaped" upward move similar to so many others since 2009.  The index finished at new closing highs yesterday and is now up 7 of 8 sessions as we enter an economic and central bank heavy portion of the calendar.  The fact it has…

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bonds

Equities Rally But So Do Bonds – What Gives?

Chris Burba (@ChrisBurbaCMT on twitter) just posted this interesting chart showing a major divergence between how bonds and stocks are acting.  Normally bonds will sell off as equities rally as we go into 'risk on' mode.  However this week even as equities rallied, bonds held quite steady and on a day like today are acting very strong.  Yields continue to fall.  Even as equities "honeybadger" their way up.  So…

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Paladinfunds290

Launch of Paladin Long Short Fund (PALFX)

Hanna Capital is proud to announce the launch of its flagship fund, the Paladin Long Short Fund (PALFX).  Available through a variety of brokers as well as direct purchase, this no-load fund seeks capital appreciation.  See the fund's prospectus here. Distributor: Capital Investment Group, Inc., Member FINRA/SIPC , 17 Glenwood Ave, Raleigh, NC 27603, (800) 773-3863.  There is no affiliation between Hanna Capital LLC, including its principals, and Capital Investment Group, Inc….

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Feb06

Fed Policies Punishing Savers to Tune of $500B Annually vs 2008 Levels

We've been writing about the punitive measures the Federal Reserve has taken against the saver class for multiple years now [Mar 31, 2010: Ben Bernanke Content to Sacrifice American Savers to Recapitalize Banks and Benefit Debtors] but actually quantifying the punishment has been less discussed.  Banking analyst Chris Whalen had, I believe from memory, a figure in the $300-400B range from an analysis I saw maybe 12 months ago, but the data presented in this WSJ story shows an even more dramatic impact of roughly $500B – annually.   …

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Feb06

[Video] Ritholtz Still Bullish on Equities Due to Monetary Spigots on Full

Yahoo Tech Ticker has a quick interview with what I call "the godfather of financial blogging" Barry Ritholtz of The Big Picture.  This interview was prior to the economic data Friday, after which Barry downgraded his chances of a recession materially.   However, the economy is not the stock market and with every major central bank now on 'ease' mode, investors simply are clinging to the easy to embrace "monetary spigots on = risk on."  (as an aside we should expect a new round of QE from the Bank of England Thursday). …

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Feb06

Corporate Profit Margins Eroding Significantly

There is an interesting chart from Brown Brothers Harrison posted on the Marketbeat blog at the WSJ.  It shows quite a dramatic slowdown in corporate profit margins thus far this quarter; indeed the worst since Q1 2010 (by a hair).  I am not sure exactly what the reason for this would be as commodity prices have dropped substantially from "QE2 highs" of about a year ago, and wage pressure is almost non existent.  (perversely a stronger economy could at first hurt profit margins, especially if there is a resurgent labor market – however we are nowhere near that point)

That leaves pricing power which apparently must not be as strong as assumed.  These type of things don't really matter in the midst of a "rip off your face" rally but something to keep an eye on for the future.  [Keep in mind this quarter has been unusually lackluster in earnings 'beats' as well] …

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Feb05

Congrats NY Giants

A fun game for the impartial viewer.  I know a lot of readers are from NYC (adopted or otherwise) so congrats.

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Feb03

Cummins (CMI) Continues to Deliver

Cummins (CMI) is representative of so many stocks since the turn of the year.  A broken down chart, the stock gapped up on the first day of the year as "risk on" came back to fruition, and has not really looked back since.  Any level of resistance was broken very easily, and the chart now already has 4(!) gaps in it since the turn of the year.  While those who are risk averse would have sat out the last gap as it was due to earnings, you can see a similar pattern in many similar industrial stocks.  That said, I hold Cummins in higher regard than most of its brethren, although sometimes it is lumped together. …

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