* As previously noted (repeatedly by myself and The Divine Ms M), the market is narrowing —with the Russell not crowing and the equal weighted S&P Index (RSP) rolling over
* Given the narrowing and the valuation model discussion in my upcoming opener, I am planning to expand my short book on the recent rally and strength in the indices
* It feels like deja vu all over again…
Here was Friday’s report card:
$SPY +0.30%
$QQQ +0.81%
$IWM -0.48%
$RSP -0.40%
Though S&P futures rose by 21 handles and Nasdaq futures increased by +238 handles on Friday, market breadth continues to have a foul odor as seen by these tweets delivered by Jason Goepfert:
We've never in almost 100 years seen breadth this bad.
The S&P $SPY is knocking on new highs but there are (many) more stocks at lows than highs.
The percentage of stocks in long-term uptrends is plunging.
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
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