Kicking Responsys; Post-FOMC Strategy: Best of Kass

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 the posts this past week were entries about being too selective and the FOMC strategy.

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Paradise Lost

Originally published on Friday, Dec. 20 at 10:05 a.m. EDT.

  • I am kicking the tires on Responsys.

One of the many problems of being cautious on the market is that one becomes too selective in initiating long positions.

One of the companies I have been doing research on this month is Responsys (MKTG)

After doing all my fundamental work, I concluded that my buy level was $16-$18 -- it was trading at $19-$20.

Today Oracle (ORCL)

What a rotten way to end the week, to be honest.

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



Post-FOMC Strategy

Originally published on Thursday, Dec. 19 at 8:21 a.m. EDT.

  • The FOMC decision didn't surprise much, but the market surprised many.

"So come with me, where dreams are born, and time is never planned. Just think of happy things, and your heart will fly on wings, forever, in Never Never Land!"

-- J. M. Barrie, Peter Pan

Yesterday's tapering didn't surprise investors (who were almost evenly distributed in expectations), but the market's reaction (up dramatically) surprised many.

Before the FOMC decision, I was positioned market-neutral because I not only didn't have a strong view of whether tapering would be implemented -- albeit, I did not expect a tapering -- but I also didn't know how the market would react to the two likely Fed scenarios.

Would a tapering with the expected dovish forward guidance be seen as reducing the uncertainty and be cheered by the market? Or would investors be concerned that tapering would cause an unwanted rise in interest rates (consensus) and whack the markets?

Or would no tapering be viewed positively (interest rate stability) or negatively by the markets because of the uncertainty going forward (consensus)?

Read: Enough About Bernanke; Mastering Supply and Demand: Jim Cramer's Best Blogs

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