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. 5 at 4:50 p.m. EDT
" Well, they call you lady luck
But there is room for doubt
At times you have a very un-lady-like way
Of running out..."-- Guys and Dolls, Luck Be A Lady (Frank Sinatra)
- The U.S. dollar has weakened considerably.
- The price of crude oil was down by about two bits to $51.45.
- Gold fell by another $4 to $1,174.
- Ag commodities got a lift: wheat up $0.04, corn up $0.11, soybeans up $0.16, oats down $0.15.
- Lumber down $2.
- Bonds, the object of my affection today ("Trade of the Week"), reversed from early morning lows. After yields rose by more than 4 basis points on the 10-year, the close was relatively flat. TLT slipped $1.20 from Friday's close, ending the day slightly higher. Bravo!
- Municipal bonds sold off. But closed-end muni-bond funds got a lift (e.g., Eaton Vance Municipal Incm 2028 Term (ETX - Get Report) and Blackrock Taxable Municipal Bond Trust (BBN - Get Report) )--hard to explain why, though!
- The 2s/10s spread dropped by two basis points to 127 basis points.
- Banks, stated simply, are continuing to be the "world's fair" -- regardless of what rates do. Short Bank of America (BAC - Get Report) , Citigroup (C - Get Report) and JP Morgan Chase (JPM - Get Report) (all small).
- Brokerages bullish -- led by Goldman Sachs (GS - Get Report) (on a late HSBC (HSBC) buy upgrade Monday, seriously??!!!).
- But insurance lagged, though my long Hartford Financial (HIG - Get Report) was modestly higher.
- Auto stocks stalled. I am still small short General Motors (GM - Get Report) and Ford (F - Get Report) .
- Retail was stronger--with upside leadership from Nordstrom (JWN - Get Report) , Best Buy (BBY - Get Report) , Foot Locker (FL - Get Report) , Nike (NKE - Get Report) and Urban Outfitters (URBN - Get Report) . JC Penney (JCP - Get Report) looked like it was going to eclipse $10/share but fizzled out.
- Ag equipment weakened, though ag commodities rallied.
- Old tech was mixed--though Microsoft (MSFT - Get Report) is a leader and short Cisco (CSCO - Get Report) up 1%.
- Energy stocks flatlined.
- Consumer non-durables were stronger, but my long Campbell Soup (CPB - Get Report) didn't follow. Coca-Cola (KO - Get Report) modestly higher, I halved that short recently.
- Biotech was disappointing with Gilead Sciences (GILD - Get Report) and Celgene (CELG - Get Report) lagging. But speculative biotech screamed higher. (Sage (SAGE - Get Report) , Intrexon (XON - Get Report) , Ziopharm Oncology (ZIOP) , FibroGen (FGEN - Get Report) , etc.).
- REITS continue to rally off of lows. The iShares Dow Jones US Real Estate ETF (IYR - Get Report) is still on my Best Ideas List (short)--it's been a big winner.
- (T)FANG was strong though Netflix (NFLX - Get Report) lower on a story that Hedgeye will diss it in a conference call tomorrow. Google (GOOGL - Get Report) , Amazon (AMZN - Get Report) , Facebook (FB - Get Report) and Tesla (TSLA - Get Report) up up and away.
- In individual stocks, fertilizers picked up a good bid. (Monsanto (MON) and Potash Company of Saskatchewan (POT) ). DuPont (DD - Get Report) , which I sold half last week, struggled a bit today. Still on my Best Ideas List, though. Disney (DIS - Get Report) higher on an upgrade while negative research comments (on China) hit Apple (AAPL - Get Report) (small). Starbucks (SBUX - Get Report) rallied some after last week' Schulz-induced weakness. I reduced to small short on that news.
1 Jim "El Capitan" Cramer's article on three industries that benefit from a Trump administration is strong.
2. Sham Gad "And the Pharaohs" on how to manage this portfolio. Uno, dos... Wooly bully!
3. Daniel "Oil Vey" Dicker goes yard on oil.
4. Rev Shark (has Adelaide's Lament) (see quote at opening of "Takeaways") 'cause he is trading a market that has a cold.
5. Lenore Williams on the Italian vote--and the market's response.
Long HIG large, CPB large, JCP large, SDS large, TLT small, DD small
At Real Money Pro we have investors and traders with differing risk appetites and time frames. Contributors such as Jim "El Capitan" Cramer, RevShark, Divine Ms. M, Tim "Not Judy or Phil" Collins and myself serve and write for those various types of investors and traders.
At times being servants to many dissimilar masters can be problematic!
My "Best Ideas List" is the place to go for my longer-term investment ideas, measured in years, not days, weeks or even months. Some of these ideas, such as Caterpillar (CAT - Get Report) , have been on the list for more than two years.
Today I am establishing a new feature, "Traders Only," for those with a one- to three-day trading outlook.
My Trade of the Week--long TLT--explains my trading rationale.