Capitulation: A Reason to Be Bearish

These aren't the good old days, so there's no reason to chase strength.
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This column was originally published on Street Insight on June 5 at 7:33 a.m. EDT. It's being republished as a bonus for TheStreet.com and RealMoney.com readers.

Capitulation

(Sung to the tune of Carly Simon's

"Anticipation.")

We can never know about the market in the days to come

But we think about them anyway

And I wonder if I'm really too bearish now

As others are chasing another stronger day.

Capitulation, capitulation

Is making them buy

But it's keeping me w-a-i-ting.

I can't tell you how hard it feels to be short

As prices track higher and higher

But I went over my logic just late last night

When I was thinking about how right today's trading might be.

Capitulation, capitulation

Is making them buy

But its keeping me w-a-i-ting.

And tomorrow, it might not all fall together

I'm no prophet and nobody knows Mr. Market's ways

So I'll try and see into Bernanke's eyes right now

And stay right here because these are the good old days?

Are these are the good old days?

And stay right here 'cause these are the good old days?

Are these are the good old days?

These aren't ... the good old days!

(These are the good old days)

And stay right here 'cause these are the good old days?

(These are the good old days)

(These are the good old days)

(These are the good old days)

These aren't ... the good old days!

Doug Kass is founder and president of Seabreeze Partners Management, Inc., and the general partner and investment manager of Seabreeze Partners Short LP and Seabreeze Partners Short Offshore Fund, Ltd. Until 1996, he was senior portfolio manager at Omega Advisors, a $4 billion investment partnership. Before that he was executive senior vice president and director of institutional equities of First Albany Corporation and JW Charles/CSG. He also was a General Partner of Glickenhaus & Co., and held various positions with Putnam Management and Kidder, Peabody. Kass received his bachelor's from Alfred University, and received a master's of business administration in finance from the University of Pennsylvania's Wharton School in 1972. He co-authored "Citibank: The Ralph Nader Report" with Nader and the Center for the Study of Responsive Law and currently serves as a guest host on CNBC's "Squawk Box."

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