Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings.
'Group Stink' Offers Fragrant Trading Opportunities
Originally published May 4 at 8:39 a.m. EST
"There's a broad market bias that's geared toward both consensus and the bullish thinking often delivered by Wall Street, the business community and the financial media.
I understand that there's a certain comfort in crowds, as well as a distrust of the remnants of individual opinion. I suppose that's a function of the human condition, human spirit and human nature.
But in today's interconnected world, all market, business and economic cycles arguably change with greater rapidity at any other time in human history. So, smart investors must be adaptive, anticipatory and stay on the alert."
--Kass Diary, "The Value of Contrarian Opinions"
The Good, the Bad and the Ugly
Originally published May 3 at 4:12 p.m. EST
-- Blondie, " The Good, the Bad and the Ugly"
There was little to report--beyond what I already have done--in Wednesday's trading session.
So let's move to the abbreviated Monarch Notes form of "Takeaways," with "The Good, The Bad and The Ugly."
* Banks despite some buying in Treasuries.
* Insurance, with Hartford Insurance Group (HIG) looking pretty, pretty good.
* Twitter (TWTR) --from goat to hero ... still!
* Alphabet (GOOGL) continues to do the "monster mash."
* Apple (AAPL) a good rally off of last night's small selloff--almost back to even.
* Niles Rodgers, Journey and TuPac!
* Nasdaq, though down some, still experienced its biggest daily decline in weeks--as evidence of the recent strength. (ProShares UltraPro Short QQQ (SQQQ) is my Trade of the Week).
* The Russell Index is not crowing.
* Biotech (Gilead (GILD) , Allergan (AGN) (I continue to caution about short dated calls in this name after the great run)
* Target (TGT) higher in a mixed retail sector.
* Big pharma weak poor (save Merck (MRK) ).
* Gold -$9.70. ( I am a $116 SPDR Gold Shares (GLD) buyer).
* Facebook (FB) and Tesla (TSLA) weaker ahead of EPS reports after the close.
* Chipotle (CMG) profit taking after a spectacular advance.
* REITs struggling (iShares US Real Estate (IYR) short remains on my Best Ideas List)
* Everyone's fave (but not mine!) Disney (DIS) (-$3), Perrigo (PRGO) , Dupont (DD) (as noted I have been steadily reducing the size on recent strength) and Akamai Technologies (AKAM) .
* Media conspicuously weak (again, small short DIS and Comcast (CMCSA) bad after a large advance).
* Speculative biotech schmeissed--for the second day in a row. (FibroGen (FGEN) , Aerie Pharmaceuticals (AERI) etc.)
* Copper, iron ore.
At 3:30 p.m. the S&P is off 3-4 handles and I have raised my net short exposure.
Position: Long DD (small), TWTR, AGN (large), HIG (large), HIG calls, SDS (large), SDS calls SQQQ (large); Short DIS (small), AAPL