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 Jan. 4 at 4:08 p.m. EDT

I love gold.

Trade of the Week--short Apple at $116.15. (The SoftBank investment is a nonevent).

Dwyerama is chillin' and I am re-establishing my ProShares UltraShort S&P500 ETF (SDS - Get Report) long--back in a revolutionary mindset.

As January goes ... well it's nonsense.

Reviewing my investment troops.

Buh bye Macy's (M - Get Report) and Kohl's (KSS - Get Report) .

Markets in tune with my expectation of a strong first two weeks--money, in particular, is going into the Russell. Its crowing.

My pal Danielle DiMartino on trade.

Mizuho on Allergan (AGN - Get Report) .

Tweet of the Day.

Peter Boockvar on the Fed minutes.

Tattoo on Bitcoin.

I re-established my SDS long at $14.74.

At 3:30 p.m. stocks were near their intraday highs.

  • The U.S. dollar weakened.
  • The price of crude oil rose by about $0.75 to over $53 a barrel.
  • Gold rose by $1.70.
  • Ag commodities strengthened: wheat up $0.11, corn up $0.04, soybeans up $0.19 and oats up $0.03.
  • Lumber was flat.
  • Bonds were flat with yields unchanged.
  • The 2s/10s spread was flat.
  • Municipals were bid for and closed-end muni-bond funds were slightly higher.
  • Junk bonds rose in price and Blackstone/GSO Strategic Credit Fund (BGB - Get Report) was up a penny.
  • Banks, after a slow start--made new highs for the day this afternoon.
  • Insurance was up with Hartford Financial (HIG - Get Report) rising 2%.
  • Brokerages continue to step along -- albeit a lower pace of rise than usual!
  • Old tech was led by short International Business Machines (IBM - Get Report) (up $2.55). I plan to add to this position in the next few days.
  • Biotech was strong--up by nearly 3% with broad gains--led by Gilead Sciences (GILD - Get Report) and some speculative names which were particularly stronger.
  • Big pharma was flat after yesterday's strong performance.
  • Auto stocks responded to better industry sales for the month.
  • Ag equipment a tale of two cities with my short, Caterpillar (CAT - Get Report) , lower (I have added this week) but Deere (DE - Get Report) up $1.70.
  • Consumer staples were slightly higher. Campbell Soup (CPB - Get Report) a new high.
  • Fertilizers continue to shine.
  • Retail rebounded led by Home Depot (HD - Get Report) , Nordstrom's (JWN - Get Report) , Foot Locker (FL - Get Report) , Nike (NKE - Get Report) and Kohl's. JCPenney (JCP - Get Report) lagged. I sold my trading rentals in Macy's and Kohl's.
  • (T)FANG was mixed with Alphabet (GOOGL - Get Report) lower and Tesla (TSLA - Get Report) stronger.
  • In terms of individual names, DuPont (DD - Get Report) up, Radian (RDN - Get Report) a new high and Oaktree Capital (OAK - Get Report) catching up from recent weakness.

Here are some value-added contributions on our site:

  1. A hard chargin' bull from Jim "El Capitan" Cramer.
  2. Shad Gad " And The Pharoahs" reviews last year's picks.
  3. Mike Norman believes the T rump rally is built on hype rather than an improving real economy.
  4. Jonathan Heller with some interesting small-cap niche plays for this year.
  5. Ed Ponsi "Scheme" on Tesla, Trump and Musk.

Positions --

Long: SDS large, HIG large, RDN, JCP large, CPB large, DD small, AGN, GLD large

Short: SPY, CAT, IBM small, MET small, LNC small, IWM small, AAPL, GLD puts, JCP puts

Position: See above.


Reviewing My Investment Troops

Originally published Jan. 4 at 10:43 a.m. EDT

Some morning observations:

  • The Mighty Oak--Oaktree Capital Group (OAK - Get Report) --is regaining some leaves as it is up $1.20 for the second up day in a row. I surmised that tax selling held the shares back in December; perhaps I was on the right track!
  • Radian Group (RDN - Get Report) has hit another new high and is up 84% from its July inclusion on my Best Ideas List.
  • Campbell Soup (CPB - Get Report) is mmm mmm good! Another new high.
  • Same for Best Ideas member Hartford Financial Services Group (HIG - Get Report) (up 1.5%).
  • Retail stocks are an upside highlight today in marked contrast to yesterday's schmeissing. A nice move from JCPenney JCP.
  • Bonds are better, despite strong European and U.S. data. I continue to see the 10-year U.S. note yield falling back to 2.25% in the near term.
  • Allergan (AGN - Get Report) , after heading higher earlier, is now down on the day. It deserves a rest--it might be the pause that refreshes!
  • Technology is a conspicuous laggard. My short PowerShares QQQ Trust (QQQ - Get Report) is my Top Pick for 2017.
  • Fertilizers are rallying--something Peter Boockvar opined on this morning
  • Banks are off their highs as JPMorgan Chase (JPM - Get Report) turns negative. Watch this group!
  • I am adding to my ProShares UltraShort S&P 500 ETF (SDS - Get Report) long, moving toward a large weighting.

Position: Long OAK, RDN, CPB large, HIG large, JCP large, AGN, SDS; short JCP puts, QQQ.

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

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.