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 (Early Edition)
Originally published Nov. 3 at 3:44 p.m. EDT
I have been warning about weakening breadth and narrow leadership for weeks and months.
What have we gotten? As of Thursday, eight straight days (in a row) down for the first time since 2008.
But, with stocks suffering from election uncertainties and given the gauge of fear/greed, the highest put/call since Brexit, etc. I am expecting a short-term trading rally at any time. But I don-t see the move as sustainable and this sort of trading is only for the facile with an ability to quickly respond.
I also suspect, for the first time, we have "weak shorts" in the market. While it doesn't look that way now, this could hasten the trading rally.
This is all predicated on a Clinton presidential victory, the Democrats regaining the Senate and Republicans holding on to the House.
The market, as judged by the spike in VIX, is on tenterhooks in fear that there are more Clinton disclosures over the next few days.
Valeant all the way back to where the stock started before the asset disposition news.