Kass: Snoozefest Holds Some Promise

This blog post originally appeared on RealMoney Silver on Jan. 14 at 7:39 a.m. EST.

Yesterday's market was uninspiring, with the S&P 500 up by 1.50 points, although there was every reason for the market to collapse in the early afternoon, a good but not telling sign.

Anxiety regarding Citigroup's (C Quote) future and General Electric's (GE Quote) present seemed to be two of the more obvious themes.

The league-leading for-profit educational companies soured after a potentially detrimental litigation was highlighted by an investment boutique. I remain short Apollo Group (APOL Quote), ITT Educational Services (ESI Quote), DeVry (DV Quote) and Career Education (CECO Quote) in the industry, although I took in a bit yesterday, expecting analysts to defend the space today.

Crude oil managed a small rally after its recent schmeissing; a dead-cat bounce seems possible (if not probable), and I am warming up to the Oil Services HOLDRs (OIH Quote) after months of underperformance, not as an investment but just for an oversold bounce.

Treasury prices rose, and yields dropped modestly, with the yield on the 10-year U.S. note retreating to 2.29%. Credit spreads continued to improve, although the availability of credit remains dear.

Internally, volatility continued to wane, which is a good thing.

Finally, I am relieved to write that the news was subdued yesterday both on the fraud front (especially of a Madoff kind) and on the political front (especially of a governor of Illinois kind).

Tuesday's action was limited and narrow, extending what seems to be a continued climate of lower volatility and investor apathy and disinterest.

All in all, Tuesday's "action" was all right. I firmly believe that opportunity will flourish out of despondency. From some of the most inconspicuous trading days (such as yesterday), good things often arise.