Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Originally published Feb. 3 at 2:05 p.m. EDT
I have moved from small-sized to slightly more than small-sized in my financial shorts. I have added Bank of America (BAC) - Get Bank of America Corp Report $23.31, Citigroup (C) - Get Citigroup Inc. Report $57.78, JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. Report $87 and Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. Report $240.50.
Nothing in the executive order (on financials) Friday should be surprising to the markets, imho.
Speaking of financials, the president's executive order spurs interest in collateral companies like mortgage insurance.
Position: Long: RDN; short: BAC small, C small, JPM small, GS small, MS smal.
Some Brief Observations on the Day
Originally published Feb. 1 at 3:26 p.m. EDT
Some brief observations on the day:
- Apple (AAPL) - Get Apple Inc. Report stole the show. Without AAPL, the market would have had a much different character. (Read: More negative).
- Wednesday had something for everyone. For the bears, there was a clear reversal (becoming a bit more common place recently). Ludacris!
- I like the recovery in gold (now $1.40 on the day, after being much lower) with SPDR Gold Trust ETF (GLD) - Get SPDR Gold Shares Report back over resistance ($115). I now am large in this asset class.
- Financials well off the highs of the day. Spurting initially (by 1% to 2%) most money centers are now barely higher. I remain short Bank of America (BAC) - Get Bank of America Corp Report , Citigroup (C) - Get Citigroup Inc. Report and JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. Report . The 2s/10s spread flat again -- a trend? If so, not financial stock friendly.
- Speaking of financials, Goldman Sachs ( (GS) - Get Goldman Sachs Group, Inc. Report ) gave up most of its gain late in the day.
- REITs continue to be among the weakest parts of the market. I remain short iShares Dow Jones US Real Estate ETF ( (IYR) - Get iShares U.S. Real Estate ETF Report ) on my Best Ideas List.
- Ag commodities were broadly higher (corn, oats, soybeans and wheat).
- Lumber up $10.
- New high in Radian ( (RDN) - Get Radian Group Inc. Report ) and Allergan ( (AGN) - Get Allergan plc Report ) up another $7.50 (after being up $7 yesterday).
- Retail is god awful, again.
- I sold out profitably again in my inverse leveraged ETFs. But I feel naked.
- The Fed futures market is suggesting only two hikes in 2017. Many are coming to the view that the Fed is getting behind the curve (see Boockvar). Is the Fed concerned that they will be admonished by the Supreme Tweeter?
Long: GLD large, RDN, AGN, CPB large, JCP small
Short: IYR, C small, BAC small, JPM small, GS, AAPL small
Position: See above.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, AGN and C.