Kass: The Hardest Stock Market to Navigate Ever?

Up until recently, the permabulls got lucky as the fumes of credit/debt creation gave a false picture of economic health and belied a weakening technical stock market foundation. Most of the fundamental optimism that supported their bullish views has turned out to be incorrect, while the technical moorings that many of them depend upon have deteriorated as well.

Away from the short term, where volatility will be rampant and opportunities to buy and short will abound, the permabulls -- similar to the permabears of yesteryear -- continue to be "in hope" and ignore the message of these two disciplines.

Do not pay attention to their utterings of continued sound economic growth and positive technical/sentiment signals, and, above all, give up on the notion of a negativity bubble, as stocks don't collapse the way they have recently when shrouded with pessimism.

Above all, be independent in your analysis and practical in your trading and investing. In the current environment -- whether buying or shorting -- err on the side of conservatism.

My preferred strategy in times of excessive volatility is to buy the dips and sell the rips. It is not for everyone. But, as Jim "El Capitan" Cramer preached last night on "Mad Money," buy and hold is not likely to be as profitable as it has been in the past. With commission rates and capital gains tax rates historically modest, a more flexible trading approach (long and short) will contribute to superior returns. And, as Jim counsels, homework is always the ticket.