Here are Doug Kass' top thoughts on some of the biggest stories of the week.


Putting Off the Inevitable

Suffice to say, Mr. Market continued to show the sort of resiliency it has had for many months -- rallying from a 12-handle drop in the S&P Index to even at day's end.

However, I did have one of my best short alpha days in individual stocks, as I caught some reasonably large swoons from several leading equities that I have reasonably sized shorts in:

* Amgen  (AMGN) , a new trading short rental, dropped by $2.24.

* Apple  (AAPL) , down $3.80, suffered from reports of weak iPhone demand.

* Amazon  (AMZN) dropped by $10.75 on no news -- the second weak day in a row.

* Facebook  (FB) , down $1.60 on new government regulations being proposed by the Senate.

* Unilever  (UN) declined by $3.60 on weak organic growth in its developed markets.

From my perch, the day's "stick save" only makes the eventual market decline as likely to be more pronounced in the time ahead as more shorts have likely "given up" -- reducing the latent buying demand from the diminished (and defeated) ursine crowd.

Position: Long SPY puts, SDS; short AMGN small AAPL AMZN FB UN SPY large .


More on the FANG Front

There is very little discussion in the media regarding Amazon's ( AMZN) $27 decline since Tuesday morning. I have been adding for the last week to my short.
 
Speaking of FANG, the government is proposing regulations on Facebook's ( FB) ad policy; I suspect there is more to come. (I have been adding to FB short as well.)
 
The political and regulatory threats to three of the FANGs is real, as I outlined in my three-part " Sell the FANGs."
 
Position: Short AMZN, FB.
 
Originally published Oct. 19 at 9:45 a.m. EDT

Doug Kass shares his views every day on RealMoneyPro. Click here for a real-time look at his insights and musings. This week he blogged on:
  • How he isn't impressed by Procter & Gamble
  • How he's sticking with his Amgen shorts

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

 

 

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