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Doug Kass fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

  • How the Fed has run out of credibility.
  • How Janet Yellen's speech was boring.

Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.

Originally published Aug. 26 at 2:34 p.m. EDT

Friday's Takeaways and Observations

The Fed has no cred.

Here are the macro and micro challenges to both Dollar Tree (DLTR) and Dollar General (DG) .

I took a sizable short market trade on the post-Yellen comments. I initiated a Goldman Sachs (GS) short and a Morgan Stanley (MS) short as well.

Rang the cash register (for a change!) and covered my SPDR S&P 500 ETF (SPY) short from the morning and my ProShares UltraShort S&P 500 ETF (SDS) long.

I also closed my short Apple (AAPL) calls for a nice gain; Trades of the Week are intended as trades and not as long-term leases.

However, I moved to large in size on my J.C. Penney (JCP) long.

Though I continue to trade around core investment shorts, I remain committed to the short side.

  • The U.S. dollar strengthened on New York Fed President Stanley Fischer's hawkish comments.
  • The price of crude oil is flat.
  • Gold also flat lined. A $1,300 to $1,310 test seems possible. Entry point?
  • A wild day in agricultural commodities: wheat -18, corn -5, soybean -14 and oats -6. (To those in Comments Section, I would continue to avoid fertilizers. I don't understand the interest in purchasing Potash (POT) down below! Double entendre! )
  • Lumber rallied by a beaner after being lower this week.
  • Municipals are flat but closed-end muni bond funds are getting hit by profit taking; I would be out of/avoid this asset class. Junk bonds are unchanged.
  • Banks continue to act swell, led by Bank of America (BAC) .
  • Insurance is slightly higher but my fav long, Hartford Financial Services Group (HIG) , continues to lag.
  • Brokerages, up big, are flat. I initiated shorts in MS and GS based on the magnitude of the recent rally, reduced expectations for capital market activity and a flattening yield curve.
  • Retail was broadly lower. I addressed the headwinds facing dollar-store companies in my opening missive. Both DG and DLTR reversed by more than $2 from the morning highs. Home Depot (HD) also is lower again (Some interest in this name in the Comments Section; I would continue to avoid after a period of outperformance).
  • Biotech is flat as a pancake.
  • Energy stocks moved lower despite a modest rise in the price of crude. I initiated trading shorts in U.S. Oil Fund (USO) , Schlumberger (SLB) and Exxon Mobil (XOM) this week.
  • Autos down on the day. I pointed out the rise in subprime auto delinquencies yesterday as another signpost of Peak Autos.
  • Staples have been hit on a stronger U.S. currency.
  • Media is weaker.

Here are some value-added contributions on our site today:

    Jim "El Capitan" Cramer on what's real or Memorex? Jim also chimes in on his view of the dollar-store space.

    Scroll to Continue

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    Mark "Nashville Cats" Sebastian on a Financial Select Sector SPDR ETF game plan.

    Rev Shark on possible reactions to the Fed.

    Ed Ponsi "Scheme" on how to play Jackson Hole.

    Position: Long HIG, SDS, JCP, LARGE, RDN, TWTR, DD; short SPY, TLT, AAPL, NFLX small, DIS small, GM, F, GS small.

    Originally published Aug. 26 at 10:25 a.m. EDT

    Shorting Goldman, Morgan on Yellen's Boring Speech

    My initial take on Federal Reserve chair Janet Yellen's widely anticipated Jackson Hole speech Friday morning:

    • No timetable for Fed rate hikes.
    • No nod to the data.
    • Nothing new.

    As I said in my opening missive, it's time to move on -- and for me, that means adding to my short book.

    I'm initiating shorts this morning in Goldman Sachs (GS) at $167.60 and Morgan Stanley (MS) at $31.40. And as I noted previously, I've also added to my short of Apple (AAPL) and my long of the ProShares UltraShort S&P 500 ETF (SDS) , which is a 2x inverse play on the S&P 500.

    Position: Long SDS (large), Short GS (small), MS (small), AAPL, Apple calls.

    Originally published Aug. 26 at 10:13 a.m. EDT

    Buying SDS and Shorting Apple on the 'Yellen Pop-Up'

    I'm fading the market's initial Janet Yellen-inspired ramp-up and doubling my long of the ProShares UltraShort S&P 500 ETF (SDS) .

    I'm also adding to my short of Apple (AAPL) .

    Position: Long SDS (large), Short AAPL, AAPL calls.

    Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL, CMCSA, SBUX, CSCO and GE.

    Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL and SLB.

    At the time of publication, Kass and/or his funds were long/short XXX, although holdings can change at any time.

    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.