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 Dec. 28 at 4:52 p.m. EDT

"Who you tryin' to get crazy with, 'ese?
Don't you know I'm loco?..."
Cypress Hill, Insane in the Brain

2017 will be the year of "The Dude."

My favorite large-cap long Allergan (AGN) - Get Allergan plc Report and short Caterpillar (CAT) - Get Caterpillar Inc. Reportfor next year. AGN closed up by $4(!) while CAT slipped $1.50.

Some moves I made this week for consideration--in CAT, AGN, PowerShares QQQ Trust, Series 1 ETF QQQ, ProShares UltraShort S&P500 ETF SDS, iShares Barclays 20+ Yr Treas.Bond ETF (TLT) - Get iShares 20+ Year Treasury Bond ETF Report , etc.

I had an active trading Wednesday--for a change it paid off. There is an investment God!

Understanding market on close imbalances, from the CFA Magazine.

Danielle does " the hustle."

Tweet of the Day--record Treasury shorts. I have a long rental in TLT (will be out at the close on Friday).

Dow 20,000 is totally meaningless. The media's preoccupation sucked the air out of the room and deflected the dialogue away from (arguably) high valuations, elevated investor optimism, unrealistic EPS expectations and lack of skepticism regarding an untested President-elect's ability to implement policy and create a strategic vision. With so many "in" the market and bullish, who is left to buy?

We had a strong five-year U.S. note auction Wednesday.

ProShares UltraShort S&P500 ETF (SDS) - Get ProShares UltraShort S&P500 Report trades at $15 late Wednesday; I have been adding aggressively on the dip.

The market was down all day--we ended right at the day's lows.

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The Russell 2000 was conspicuously weak--never a healthy signpost.

I went out at the highest net short exposure of the last several weeks.

Here are some value-added contributions on our site:

1. Roger Arnold on a no-brainer, an infrastructure bank.
2. A little traveling music for John Reese.
3. Preoccupation with DJIA 20,000 trips up bulls, by the Right Rev Shark.
4. Tim Melvin on bank discoveries.
5. Guy Ortmann shares my Nasdaq concerns.

Positions --
Long: AGN, HIG large, CPB large, JCP large, SDS, KSS small, M small, TLT
Short: JCP puts, SPY, QQQ, IWM small, CAT, SBUX small, DIS small, MET, LNC, IBM short, IYR small, XLF small

Position: See above.

There Is an Investment Deity

Originally published Dec. 28 at 2:36 p.m. EDT

There have been some large intraday moves to the downside in securities I am actively trading Wednesday:

Stocks on Wednesday's low and bonds on Wednesday's highs.

Position: Long TLT, AGN, SDS; short QQQ, CAT.

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

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.