Kass: Trading Against the Trend By Doug Kass RealMoney Silver Contributor 5/14/2008 12:06 PM EDT

These blog posts originally appeared on RealMoney Silver on May 14.

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Recommended Reading

7:16 a.m. EDT

There is a general sense in the markets that the credit contagion is over. This is probably wishful thinking.

The aftermath of credit implosion -- similar to the radioactive contamination in the aftermath of the detonation of a nuclear bomb -- will be with us for some time to come and will serve to further inhibit overall economic growth.

Run, don't walk, to read about the debt problems facing the owner of Heathrow and Gatwick airports.

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Market Wants to Believe

8:56 a.m. EDT

After the tame CPI (today's work of fiction), futures have ripped, despite yesterday's hawkish Fed Governors' concerns.

The stock market very simply wants to believe... and go higher.

It has been the case for weeks, and it is the case now.

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Negativity Bubble Bursts

9:02 a.m. EDT

Sentiment is quickly shifting from the previous negativity bubble.

This is an important reagent to an eventual correction.

Investors Intelligence bulls are back up to 46, as bears drop to 29.9 -- at respective highs and lows since January.

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Trading Against the Trend

9:37 a.m. EDT

I am trading against the trend and renting some shorts on the SPDRs (SPY) and PowerShares QQQ (QQQQ) now.

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Favorite Long and Short

10:09 a.m. EDT

Favorite long: UltraShort Oil & Gas ProShares (DUG).

Favorite short: PowerShares QQQ (QQQQ).

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Sold DIS Long

11:07 a.m. EDT

I have sold all of my Disney (DIS) long.

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Doug Kass is the author of The Edge, a blog on RealMoney Silver that features real-time shorting opportunities on the market.

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At the time of publication, Kass and/or his funds were long UltraShort Oil & Gas ProShares and short SPDRs and PowerShares QQQ, although holdings can change at any time.

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Short Offshore Fund, Ltd.

Read our conflicts and disclosure policy.