Doug Kass is the president of Seabreeze Partners Management Inc. Until 1996, he was senior portfolio manager at Omega Advisors, a $6 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody.Expand

Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box."Collapse

As I wrote in my opener, "At a Good Turn, You Will Not Want to Buy," I chronicled gems from legendary technical analyst Wally Deemer and expressed the view that bottoms are rarely accompanied by optimism and buying -- though I am sure the storytellers in the business media likely already will have forgotten their Cassandra-like warnings of yesterday. We closed right on my Fair Market Value calculation of 1864! We closed nearly 60 handles from yesterday's lows/test. I consider today a successful test of the 1812 capitulation low of yesterday and 3 ½ weeks ago. Today's bounce showed how many were offsides and essentially immobilized by the recent declines. Many were clearly short equities and/or crude, and today's up move demonstrated how conservatively positioned the longs are. The contrary worked this week. Does that mean we go straight up?  Obviously not. As I posted, I thought it prudent to scale back my large long exposure to between small and medium in size in front of the weekend. Frankly, I want to enjoy myself and not worry about large positions. My long "Trade of the Week," Citigroup (C), at $37.70 provided no profits but it could have been worse; it closed the week down 15 cents after some drama!  My short "Trade of the Week," iShares 20+ Year Treasury Bond ETF (TLT), was a big win of $4 in about 24 hours. I closed it and my long ProShares UltraShort 20+ Year Treasury (TBT) out.  The U.S. dollar strengthened. Crude was the standout asset class, up by $2.94 to $29.15. Gold gave back $8.60 Agricultural commodities flatlined, with wheat, corn, sugar, soybeans and oats unchanged. Lumber was up $2.10. Treasuries were nine to 10 basis points higher at the longer end  and the yield curve began to steepen from its flatness. Municipals got hit and so did closedend municipal bond funds. High yield was quite strong, maybe the largest gains in weeks. iShares iBoxx $ High Yield Corporate Bond ETF (HYG) was up $1.17 and SPDR Barclays High Yield Bond ETF (JNK) was up 47 cents. Blackstone/GSO Strategic Credit Fund (BGB) disappointed and was flat; I added to an already large holding. Jamie Dimon set the positive tone for banks this morning and so did the Deutsche Bank (DB) bond tender as well as the improvement in crude oil, and boy did the sector respond, with gains of 6% to 8%, albeit from depressed levels. Citigroup rose $2.50, JPMorgan Chase (JPM) was up $4.40 for its best day in five years, and Wells Fargo (WFC) and Comerica (CMA) also rose. I purchased depressed and controversial DB to add to my long list of bank longs. Brokerages shined, with 3% to 5% gains; see Dan Loeb on Morgan Stanley (MS) below. Life insurance stocks reversed yesterday's losses. I covered long-time life insurance shorts and purchased calls after 40% gains in only a few months. Lincoln National (LNC) and MetLife (MET) remain on my Best Ideas List because I plan to short strength. They're oversold for now, as was the market. I added to Hartford Financial Services Group (HIG) and Allstate (ALL) longs.  Retail was stronger despite some downgrades for Best Buy (BBY) and Bed, Bath and Beyond (BBBY). The stocks are dirt cheap. I continue to hold Macy's (M) -- my favorite -- BBY and BBBY. Remodelers Home Depot (HD) and Lowe's (LOW) had dead-cat bounces. Media, though higher, disappointed in its bounce-back. I remain short with small positions in Comcast (CMCSA) and Disney (DIS). Autos were higher. I covered General Motors (GM) today, but it is still on my Best Ideas List as I am a short-seller on 10% strength. Biotech was up 3%, with Valeant Pharmaceuticals (VRX) and Allergan (AGN) performing better.  My 12-stock biotech basket did well. Large caps Celgene (CELG) and Gilead Sciences (GILD) were $2 to $3 higher. Speculative Acadia Pharmaceuticals (ACAD), Portola Pharmaceuticals (PTLA) and Sage Therapeutics (SAGE) -- now up 10% from yesterday -- were stronger. (T)FANG was conspicuously weak, with negligible gains. Tesla (TSLA) was down on the day. The words in my opener rang true: "The market's former leaders (biotech, Internet, health care and consumer discretionary stocks) all seem to be in an initial leg down, but look like they're oversold and could have a weak bounce, with a test to come later. That could represent an important intermediate-term leadership change." Remember, leadership changes are typically not market-friendly.  Let's watch (T)FANG closely in the days ahead. NOSH members were all higher, but not materially so. CRABBY was happy with C, Radian Group (RDN), ALL and Alleghany (Y) faring well. Dan Loeb's Third Point just filed with 3 million shares of MS. He also increased his position in Dow Chemical (DOW). I sold two-thirds of my SPDR S&P 500 ETF (SPY) long rental and half of my iShares Russell 2000 (IWM) at good prices and for profits. This, coupled with some short covers and additional buys (including ALL, BGB and HIG), moved me from a large to between small and medium in
| Feb 12, 2016
| 4:57 PM EST
Judge Smails embarrassed me into writing it!
Thanks for travelling the week with me and our great contributors.
Here's a comprehensive summary of this week's important macroeconomic events from Peter Boockvar:

Programming Note Real Money Pro($)

There will be no "Takeaways and Observations" today, as I'm exhausted after this trading week!

Selling Some SPY and IWM Real Money Pro($)

I'm thinking that the $186 gap in the SPDR S&P 500 ETF might be a formidable hurdle today given that we're heading into a long weekend that's filled with uncertainties.
| Feb 12, 2016
| 12:36 PM EST
$185.80 Exhausted and a long weekend. Column up shortly Sold some IWM as well.

Covering TLT and Selling TBT Real Money Pro($)

I've closed out my "Short Trade of the Week" -- a short of the iShares 20+ Year Treasury Bond ETF (TLT).

Selling a Third of My SPY Long Real Money Pro($)

Housekeeping item: I've sold one-third of my long of the SPDR S&P 500 ETF (SPY) at $185.60.
I think there are only a few grownups in the room on Wall Street right now, including:

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