Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
The Good, the Bad and the Ugly
Originally published Oct. 19 at 4:01 p.m. EDT
Position: Long SDS, GLD, JCP large; short GM, AAPL, F, SPY, NFLX small, CAT small .
" You see, in this world there's two kinds of people, my friend: Those with loaded guns and those who dig. You dig."
-- Blondie in " The Good, the Bad and the Ugly."
I did very little Wednesday.
Markets were higher from the get-go and seemed "stuck" near the highs for the last four hours.
And now it's time to run down "The Good, the Bad and the Ugly" ...
- Mr. Market managed to make gains on top of Tuesday's ramp, the first two-day, back-to-back rise in two weeks. My sense is that participants are again becoming complacent.
- Commodities (ag, lumber, gold and crude oil) were a strong asset class.
- Autos (General Motors (GM) - Get Report ), and retail JCPenney (JCP) - Get Report +3.5%, Coach (COH) , Macy's (M) - Get Report )--two lagging groups--started to turn higher Wednesday.
- Junk bonds climbed and Blackstone/GSO Strategic Credit Fund (BGB) - Get Report added $0.14 and is back approaching $15.
- Banks and brokerages.
- (T)FANG broadly higher, save Amazon (AMZN) - Get Report , which is a holding in Jim Cramer's Action Alerts PLUS portfolio.
- Closed-end municipal bonds surged--Bitterroot Resources (BTT) - Get Report , Nuveen Dividend Advantage Municipal Fund (NAD) - Get Report , Invesco Van Kmpn Calf Vl Mncpl Incm Trst (VCV) - Get Report .
- Energy stocks (Action Alerts PLUS holding Schlumberger (SLB) - Get Report +$3) off of a marked advance in the price of crude oil.
- Big turn higher in Chipolte Mexican Grill (CMG) - Get Report . (+$11).
- Ag equipment (Deere (DE) - Get Report and Caterpillar (CAT) - Get Report ).
- Intel down $2. I traded in and out on the short side Tuesday night.
- Big Pharma (Abbott Laboratories (ABT) - Get Report ).
- Consumer staples on a strengthening U.S. dollar (Procter & Gamble (PG) - Get Report ).
- Apple (AAPL) - Get Report down on the day ... not really "Bad," but I wanted to point it out.
- Speculative biotech ( e.g. Portola Pharmaceuticals (PTLA) - Get Report , Nektar Therapeutics (NKTR) - Get Report , Acadia Pharmaceuticals (ACAD) - Get Report , Aerie Pharmaceuticals (AERI) - Get Report ).
Ringing Cash Register on Intel Trading Short
Originally published Oct. 19 at 5:42 p.m. EDT
In listening to the conference call it appears that the weakness is mostly in servers (cloud, etc are strong)--so the report should not be devastating to technology
I wanted to add that our subscribers have differing risk appetites and timeframes.
My Intel short rental was strictly for those that are active and fast traders.
My Best Ideas List, by contrast, has a plethora of investment longs and shorts for those with longer investing horizons.
As a practice, I like to trade and invest, particularly in the current market setting, which provides opportunistic trades and longer-term investments.
As Woody Allen once said, "The benefit of bisexuality is that it increases your chance of a Saturday night date." So, too, can trading AND investing provide similar benefits in delivering investment performance!
Position: Short QQQ small
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long SLB and AAPL.
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.