Yesterday we covered all our short index exposure into weakness.
I am reacting to the robust rally from yesterday afternoon’s swoon (and changing risk ranges).
With S&P futures +64 handles and Nasdaq +323 handles I have re-shorted the indices (very small):
* $SPY $760.73
* $QQQ $712.55
Given the momentum-based, algo-dominated market (“buyers buy strength and sell weakness”), I plan to give Mr. Market a wider berth on my scaling into a larger position.
In other words, I am trading in the market that I face, not the market that I want!
I am confronting the previously mentioned machines with technology (and fractal analysis) (h/t Hedgeye) and risk management/discipline.
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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