NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among his posts this past week, Kass discussed the eurozone's challenges, how the market's reaction to bad news on Tuesday indicated a short-term bottom and why he was taking a new long position in Yahoo!.

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Heavy Lifting Ahead for Eurozone

Originally published on Friday, July 27 at 2:18 p.m. EDT.

The fundamental problems facing Europe cannot be resolved by bond purchases alone.

While Draghi's rhetoric has more volume than usual today and yesterday, there is a lot of heavy lifting ahead, especially within the context of the numerous challenges facing Italy and Spain in their quest for economic growth and in their much-needed debt financings.

Moreover, Draghi must convince the ECB council members, especially the Bundesbank, and it is unclear how quickly the EFSF can actually buy the sovereign debt of Italy and Spain.

It is my view that the swift rise in the indices since Wednesday has now more than discounted Draghi's comments and that a lot of the rise today is short covering. Don't lose sight of the fact that the fundamental problems facing Europe cannot be resolved by bond purchases alone.

At the time of publication, Kass had no positions in stocks mentioned.

Gauging the Reaction

Originally published on Wednesday, July 25 at 7:18 a.m. EDT.

It is often how the market reacts to news that is more important than the news itself.

From my perch, a short-term market bottom might be falling into place.

Consider what Mr. Market had to deal with yesterday:

  • high-profile earnings misses at Apple (AAPL) - Get Report and at economic bellwether United Parcel Service (UPS) - Get Report;
  • Spain moving closer to the need to be rescued (with its 10-year note yielding more than 7.5%);
  • reports that another round of debt restructuring are needed for Greece (again!);
  • evidence of an emerging German recession/slowdown; and
  • a weakening domestic economic picture manifested in a disappointing Richmond Fed Manufacturing Index.

A very poor market day on Tuesday -- at one point, the

DJIA

was down by more than 200 points; it closed down by only 100 points -- got a kick save from John Hilsenrath's 3:45 p.m. EDT column in

The Wall Street Journal

suggesting that more cowbell will be forthcoming from the

Fed

.

Apple's miss after the close turned

S&P 500

futures down another 8 handles, and

Nasdaq

futures dropped by nearly 30 handles, but that was the bottom for the Tuesday-evening/Wednesday-morning trading session. S&P futures are now up by 6 handles, and Nasdaq futures have erased two-thirds of the aforementioned loss and are down by only 9 handles.

I have learned throughout my investment career that, at times, it is often how the market reacts to news that is more important than the news itself.

In that regard, I now expect a near-term recovery for the U.S. stock market but back only toward the higher end of the recent trading range (1300-1410).

I start the day at about 20% net long, and I plan to be a buyer on any weakness today.

At the time of publication, Kass had no positions in stocks mentioned.

Starting a Long in Yahoo!

Originally published on Wednesday, July 23 at 1:33 p.m. EDT.

My catalysts are new CEO Mayer and new board member Loeb.

I have gone back into a starter position in

Yahoo!

(YHOO)

on the long side.

The share price has gone nowhere since the high-profile CEO appointment and since hedgehogger Dan Loeb has acquired board representation.

After following the companies for more than a decade, I know the values are there, and it seems to me that the company finally will press to realize them.

I was hoping to pick up the shares below $15 in a correction, but I suspect that is unlikely.

Stated simply, Mayer and Loeb are my catalysts to this purchase.

At the time of publication, Kass was long YHOO.

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.