About those banks.
My Takeaways and Observations
"And if by chance an honest man like yourself should make enemies, then they would become my enemies. And then .... they would fear you."
-- The Godfather
Stock of the day -- Nordstrom (JWN) - Get Report . Take the gun, take the cannoli. I sold some JWN in premarket near $49 and added back under $45. My estimates of private value are less than this optimist.
The Russell Index's strength was conspicuous today. Maybe its because of the big financial weighting?
Cowen gives thumbs up to Allergan.
Stocks were relatively narrow during the day but there was significant differentials in sector and group performance (see below).
* The US Dollar rose in value after weeks of weakness.
* The price of crude oil was exactly unchanged.
* Gold gave back -$13. The precious metal is way overbought now.
* Ag commodities: wheat +6, corn +2, soybean +7 and oats -9.
* Lumber +5.80.
* Bonds get hit in price and rose in yield. The ten year yield rose by two basis points and the 2s/10s curve expanded by 1 bp.
* Muncipals fell.
* High yield was flat - after earlier weakness. Slightly under support.
* Banks were the "world's fair."
* Biotech caught a bid -- but is "leaking" late in the day.
* Big Pharma is mixed.
* Media quite weak led by Disney to the downside.
* Rails flat to higher.
* Autos are mixed.
* Oils were flat like the commodity.
* Consumer staples were buried today - I didn't see a proximate cause. Campbell Soup (CPB) - Get Report , Kimberly Clark (KMB) - Get Report , Coca-Cola (KO) - Get Report and Procter & Gamble (PG) - Get Report a mess.
* (T)FAANG rolling over? Famous last words!
* In individual stocks, Radian (RDN) - Get Report ++ (I went large earlier this week), DuPont (DD) - Get Report continues to move towards its old highs, some profit taking in Starbucks (SBUX) - Get Report and Apple (AAPL) - Get Report .
Here are some value added contributions on our site today:
Position: LONG HIG large AGN large CPB large SDS large SDS calls SQQQ large JWN M RDN large DD small SHORT SP.
Originally published June 8 at 3:03 p.m. EST
Reducing Shorts in Individual Names
I plan to move the proceeds of these relatively modest covers into Index shorts in order to maintain my large net short exposure.
Since we had a brief conversation in the Comments Section about sizing and transparency, I want to make several points.
- I routinely (almost on a daily basis) trade around many of my long and short positions.
- When a significant move is made I almost always document that move in "Today's Trades" or in separate posts. Frankly I have a lot on my plate and sometimes I may forget or omit some changes but this is not intentional.
- It would be impossible -- cluttering up my entire Diary, confusing subscribers and be of little interest to most of the subs who are predominantly investors -- to memorialize all my trading moves.
- In the main, I attempt to be as transparent as possible. Frankly I know of no one who keeps subscribers up so consistently and frequently with my positions (often documented in "Takeaways" nearly every day).
Finally, moves from medium- to large- or small-sized (or vice versa) should be viewed in the context of my (one person's) opinion. No one should ever take my input or that of any contributor in a vacuum. Rather, multiple sources should be evaluated in all investment and trading decisions within the context of one's risk profile and appetite and time frames.
Position: Short BAC C JPM FAST.
Originally published June 7 at 12:23 p.m. EST
Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
Visit here for must-know investment insight.