Hot Potato?; Make Uncertainty Great Again: Best of Kass

Doug Kass fills his blog on RealMoney every day with his up-to-the-minute reactions to what's happening in the market and his legendary ahead-of-the-crowd ideas. This week he blogged on:

  • How some investors are confident Trump will be a growth-friendly president.
  • How uncertainty and volatility may factor in the market.

Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.


 
Done Covering SDS Short and Back to Market Neutral
 
Originally published Nov. 7 at 10:16 a.m. EDT
 
I have covered the balance of my previously large ProShares UltraShort S&P 500 ETF ( SDS) short at $17.98.

I am now back to market neutral and very light in my gross exposure.

We have now traversed nearly 35 S&P handles since Friday's close.

We could be borrowing from an anticipated Clinton victory now.

The "rub" will now be in how the Senate and House tilt.

More later.

I have covered the balance of my previously large ProShares UltraShort S&P 500 ETF (SDS) short at $17.08.

I am now back to market neutral and very light in my gross exposure.

We have now traversed nearly 35 S&P handles since Friday's close.

We could be borrowing from an anticipated Clinton victory now.

The "rub" will now be in how the Senate and House tilt.

More later.

Position: None.
 

 
Exiting SPY, Covering More SDS Short
 
Originally published Nov. 7 at 9:54 a.m. EDT
 
I have sold the balance of my SPDR S&P 500 ETF ( SPY) long at $211.80 for a $3.60 gain since Friday's after-hours purchase.

I also have covered another one-third of my ProShares UltraShort S&P 500 ETF (SDS) short under$17.10 for another good profit

I have moved back to only slightly net long.

Position: Short SDS small.
 

 
Hot Potato?
 
Originally published Nov. 9 at 3:04 p.m. EDT
 
I am going to call it a day as I slept not a wink last night, and I have a touch of the flu.
 
I would like to say that I have an explanation for the market's reversal but, to be honest, I don't.
 
Some of the sector and asset class moves are breathtaking -- in banks/financials, bond surrogates, etc.
 
An explanation is that investors are confident that Donald Trump will be a growth-friendly president. (I am not convinced it will be as easy as the markets are presuming today.)
 
I do feel the influence of quant strategies are importantly influencing and exaggerating today's price action. This, and so many, offsides (under-invested or short).
 
Remember, volatility works both ways.
 
There will be no "Takeaways" as I am going straight to bed.
 
I did not add to my short book this afternoon.

The close will be governed by the last program standing.
 
See you in the morning.
Position: None.
 

 
Trump Victory Makes Volatility, Uncertainty Great Again
 
Originally published Nov. 9 at 9:06 a.m. EDT
 
As expressed in the day's opening missive, a Trump victory has made volatility and uncertainty great again.

This is my overwhelming investment take from the 2016 election.

Given the developing policy uncertainties, the degree of congressional cooperation and questions regarding Donald Trump's ability to execute and to deliver on his policies, the president-elect's unknown leadership skills, issues regarding his Cabinet and Supreme Court appointees and numerous other uncertainties, owning and holding long-dated assets (both bonds and equities) is now a questionable strategy.

More than ever, an opportunistic trading strategy should trump the buy/hold crowd in the months--and maybe years--ahead.

Get your trading hats on, as the only certainty is the lack of certainty.

Position: Short SPY.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

At the time of publication, Kass and/or his funds were long/short XXX, although holdings can change at any time.

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.

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