Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.

My Takeaways and Observations

Originally published Dec. 1 at 5:48 p.m. EDT

What a strange day -- maybe even ominous.

This table tells it all.

The divergences I have been mentioning this week intensified today, with the technology-laden Nasdaq taken out to the shed and the Russell 2000 Index trading lower for the third consecutive day. Breadth was poor as were new highs and new lows. Moreover, put/call was still low indicating continued complacency.

The Good, the Bad and the Ambiguous from Wednesday's trading.

Goldman Sachs (GS) - Get Goldman Sachs Group, Inc. (GS) Report and the financials were upside leaders and carried the DJIA and led to slightly better relative performance for the S&P 500 Index. Tech led the downside in a vicious rotation away from the sector.

It was short pressing time for me. Though I took off my Trade of the Week (short iShares Russell 2000 Index (ET (IWM) - Get iShares Russell 2000 ETF Report calls and long IWM puts) -- which worked like a charm and was quite profitable.

I cleaned up tag ends in a number of very small shorts Thursday and took off five names from my Best Ideas List.

Halved my favorite large-cap long, DuPont (DD) - Get DuPont de Nemours, Inc. Report , and my favorite large-cap short, Coca-Cola (KO) - Get Coca-Cola Company Report , down to small size, based on changing risk/reward ratios.

A short grows in Apple (AAPL) - Get Apple Inc. (AAPL) Report .

I covered half of my remaining Starbucks (SBUX) - Get Starbucks Corporation Report short at around $55.25 after the Howard Schultz resignation announcement.

Thoughtful "El Capitan" comments/input.


Closed-end muni bond funds and more.

Peak Refinancings.

Danielle and the French Connection.

The downside to lower tax rates for Citi (C) - Get Citigroup Inc. Report and the other financial intermediaries.

Regarding the Donald Trump speech at the Carrier facility, I have some brief thoughts:

TheStreet Recommends

I believe that speech was one of the more reckless speeches I have ever heard from a president or president-elect. Let me explain. To me it is chilling when companies are threatened -- and many Republicans and Democrats will think the same. To say, public/tax policy will made on the basis of making companies fearful is insane. A president should want to create a sustainable atmosphere in which companies will stay in the U.S., not participate in ad hoc or isolated and random attacks on companies. While the president has vast powers, I don't even think he has the "authority to tax heavily at the border." What criteria is he basing such a decision on? This is going to be an eventful four years.

Campbell Soup (CPB) - Get Campbell Soup Company Report rallied higher by $1 from my purchase add on earlier in the day. Umm umm good!

Stocks closed near the lows.

Here are some value-added contributions on the site:


1. Jim "El Capitan" Cramer on " Not What Bulls Wanted to See."
2. "Meet" Brett Jensen on rotation.
3. Tim "Not Judy or Phil" Collins.
4. What happens when this extreme rotation ends? from Rev Shark.
5. And another from Rev Shark.

Positions: Long HIG large, JCP large, CPB large, SDS large, DD small, RDN, OAK
Short SPY, TLT small, KO small, DIS small, AAPL large, CSCO, CAT small, SBUX small, C small, BAC small, JPM small, GM small, F small.

A 'Ludicrous Forecast' May Soon Occur

Originally published Dec. 1 at 1:44 p.m. EDT

Remember these comments from Thursday at 10:50 a.m. EST -- because I think this ludicrous forecast may occur soon:

"Also, while I won't likely be aiming for it, I suspect we are closing in on a reversal day in bonds and financials. An island reversalcould lie ahead, maybe sooner than later."
-- Kass Diary

As well, DoubleLine's Jeff Gundlach just announced he sees a top in the equity market and a high in yields/rates by January inauguration.

This could precipitate the "island reversal" in bonds and financials that I mused about earlier in the day.

I underscore Jim "El Capitan" Cramer's thoughtful comments and, by contrast, I reject the universal optimism I watch in the business media.

Finally, with stocks at their day's lows -- the decline seems to be accelerating -- a good thing for the ursine crowd and for our Trade of the Week (short IWM calls and long IWM puts).

Position: Long SDS large; short SPY, IWM common .

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, SBUX, AGN, GOOGL, FB, C and CSCO.

Doug Kass is the president of Seabreeze Partners Management Inc. Under no circumstances does this information represent a recommendation to buy, sell or hold any security.