Kass: Neither a Bull nor a Bear Be

It's the sort of action that can shake out all but the most convicted, leaving open the possibility that, coming out of the current base building, my scenario of an upward move to the 1,050 level on the S&P 500 might be in sight as the underinvested and shorts are "forced in" during a mid- to late-summer stock buying frenzy.

As I have written in "Leave the Bonds; Take the Equities," an important catalyst to the summer move higher in stocks could be a continuing drop in bond prices and a continuing rise in yields, resulting in a massive reallocation out of fixed income and into equities by large pension plans that are currently overly positioned in poorly performing bonds.

Life's but a walking shadow, a poor player,
That struts and frets upon the stage,
And then is heard no more. It is a tale
Told by an idiot, full of sound and fury,
Signifying nothing.

-- Macbeth, from William Shakespeare's Macbeth

Perhaps this column is a tale that signifies nothing and is told by an idiot, but I prefer to think that it is full of sound and fury.

Doug Kass writes daily for RealMoney Silver, a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass's daily trading diary, please click here.

---

Know what you own: Some of the most active stocks in Friday's midday trading include Bank of America (BAC Quote), General Motors (GM Quote), Direxion Daily Financial Bear 3X Shares (FAZ Quote), SPDRs (SPY Quote), Direxion Daily Financial Bull 3X Shares (FAS Quote), Financial Select Sector SPDRs (XLF Quote) and Citigroup (C Quote).