60 Minutes on the Explosion of Disability Enrollees

60 Minutes this past Sunday did a piece on a story that has been talked about in these pages for a long time – the rapid increase in disability enrollment since the recession half a decade ago.  It is quite remarkable that effectively 5% of the working population is now enrolled. [Apr 7, 2011: Nearly 1 in 20 Working Age Americans Are on Disability, a Doubling Versus 1990]  [Dec…

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WSJ's Hilsenrath on Janet Yellen

With the demise of Larry Summers, all eyes point to Janet Yellen as the next Federal Reserve head.  Frankly it is a bit surprising she was not the leading candidate all along.   Earlier this year, we posted a NY Times piece on the woman [Apr 25, 2013: NY Times Does Janet Yellen] from a more personal level and now we have one on the Fed whisperer himself, Jon Hilsenrath…

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The Most Overbought Point in 2013

Quite an explosive rally yesterday at the 2 PM mark, in fact about 70% of yesterday's gains came in a minute or so per Bespoke Investment; the power of algos.   Obviously the Fed, by surprising just about everyone with "no taper at all", lit another fire under the market but coming off a near vertical rally since late August it is still a bit surprising to see the…

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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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Mar05

Good results out of ISM Non Manufacturing, which represents far more of the U.S. economy than the much more heralded ISM Manufacturing.  Not only did results come in above expectation but they improved from the prior month.  Markets didn't react immediately but we are seeing a modest bounce now off this morning's lows.  What we have to watch for now is when markets stop reacting to positive news…

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Mar05

The current market can definitely be described as divergent.  Apple (AAPL) and its 10%+ weighting in the NASDAQ (and much larger weighting on the very popular QQQ ETF) is keeping that index in seventh heaven.  A host of larger caps seem to be keeping the DJIA and S&P 500 in good shape as well… even as the Russell 2000 has cleanly broken down below the 20 day.  We have been harping on this divergence for weeks and highlighted the break late last week – I see it in quite a few financial media outlets and the general stock market blogosphere today. 

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Mar02

I keep speaking about this divergence because it is quite amazing in (a) how long it has persisted and specifically to today (b) the ratio.  Usually we've seen about a 0.5 to 0.7% spread between the S&P 500 and Russell 2000 as they have been moving thru February.  Usually it's about a 2.5:1 ratio or maybe a bit more i.e. S&P 500 down 0.3%, Russell 2000 down 0.65+%.  As I type this the Russell 2000 is down 1.85% versus the S&P 500's 0.5% – that is almost 4 to 1.  A tale of two markets continues.  The S&P 500 is holding at its 10 day moving average where the dip buyers have had a buying orgy all year.

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Mar02

You might remember that orange box I posted a few days ago signifying the range the Russell 2000 has been for weeks, churning between 810 and 830.  Well it has just broke the bottom of that range so it will be interesting to see what happens here.  Of course the S&P 500 and NASDAQ continue to sit above all key moving averages as the larger cap indexes are led by a select bunch but this divergence has now been going on for about a month…

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Mar02

I'm sure many readers have used Yelp's reviews to find a good restaurant or other service oriented business; well as of today you can now invest in the stock.  As with almost every flashy offering it will be mispriced with a low float so that "smart money" can flip it for a big profit on day 1.  (as an aside did you know the U.S. is the only country that has this sort of system of massive favoritism for allocating IPO shares?)  This 8 year old firm still does not make money but that won't stop the retail horde from grabbing on to it, since it is an easy story to understand with very good revenue growth.  That said there is a lot of competition crowding in on its space…

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