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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 Sept. 28 at 5:29 9.m. EDT

It was a nostalgic Wednesday morning.

A 20th anniversary.

My first TST column in 1997.

There was no rest for the weary as the crude and oil markets turned on a dime after OPEC announced a production cut. I, Jim Cramer and others are skeptical about this -- stay tuned.

Pennies from Heaven?

Lessons from Nike's fall from grace. A good one, me thinkest.

Tattoo in the house.

I rejoined the revolution and added to Hartford Financial Services Group (HIG) - Get Hartford Financial Services Group, Inc. Report and J.C. Penney (JCP) - Get J. C. Penney Company, Inc. Report longs -- at nice prices.

Stocks closed at the high of the day, rallying by nearly 20 handles from the morning's lows.

In talking to institutional desks, there was a lot of algo and machine buying all afternoon following the OPEC statement.

In the main, I looked on today's strength as an opportunity to raise my small net short exposure as downside/upside seems very attractive from the dark side.

SSSs (S&P) conspicuously strong against QQQs (Nasdaq).

TheStreet Recommends

Here are some value-added contributions from our great contributors:

    Jim "El Capitan" Cramer with a twofer. On the phony OPEC statement and on the uncertain markets -- I really enjoyed reading this one!

    James Passeri, oil vey!

    Rev Shark sees a yuge market move. Clear the decks!

    Oh no, GoPro! from Ed Ponsi "Scheme."

    "Burn" Bob Byrne answers some sub questions.

    Position: Long SDS,HIG (large),JCP (large);Short TLT, F,GM,KO,SPY, QQQ small, CAT small, DIS small, SBUX small.

    Some Final Thoughts

    Originally published Sept. 29 at 4:49 p.m. EDT

    I generally agree with Jim "El Capitan" Cramer that the banks are the likely cause for Thursday's market decline

    Jim's article is thoughtful and should be read as he outlines the problems associated with Wells Fargo (WFC) - Get Wells Fargo & Company Report but more importantly, what I have described months ago as the "canary in the coal mine" -- Deutsche Bank (DB) - Get Deutsche Bank AG Report . (I will have more Monday on why I am continuing to avoid banks).

    Remember one of my three questions that I start the day asking myself: "With the G-8's political coordination at an all-time low, how slow and inept will the reaction be if the wheels do come off?"

    • If it hits the fan, will the central banks be there for each other?
    • Lehman will look like a walk in the park compared to Deutsche Bank (whose derivatves are a multiple to Lehman's) if they are not very proactive with solutions.
    • My guess is any cohesiveness is at a all-time low

    Do we, as investors, want to take much risk at 25x GAAP and 19x non-GAAP earnings at a time in which the spread between GAAP and non-GAAP has never been wider?

    And when political and geopolitical risks and uncertainties have never been as pronounced?

    I don't, and I raised my net short exposure to medium-sized.

    Position: Long SDS, Short SPY.

    Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AGN, GOOGL and WFC.

    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.