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:
- Why he's calling an audible.
- How being contrarian is still a good idea.
Click here for information on RealMoney, where you can see all the blogs, including Doug Kass'--and reader comments--in real time.
This is a tactical move for the short term--as I suspect (or am hopeful!) that I will have a chance to reload at better prices.
Moreover, I will be travelling tomorrow and I will be out of the office. And in these volatile times I recognize anything may happen--so I will reduce as I will not be "on watch."
These moves will move me all the way back to small net short.
In no way am I changing my market negative market view that we have essentially seen a market top for this year.
But it is important to remember that leveraged ETFs (whether bullish OR bearish) are trading vehicles and short term rentals--not long term leases--because of the premium decay and poor tracking (which I have written intensively about in the past).
About nine months ago I wrote about a contrarian thesis onf " Peak Autos," owing to the intersection of record-high incentives, inventory to sales (on lots) back to 2007 levels, lower used-car prices, deteriorating auto loan paper, and a record number of cars coming off of lease.