Understanding My Trading Moves

The following posts (in case you left early on Wednesday!) helps to explain why I got shorter (on strength yesterday) — remember I covered my index shorts on the whoosh lower at around 11 p.m. last night to take a quick profit!

PPS

Bookings shrunk and backlog did not grow!

The after-market move in Microsoft ($MSFT) reminds me of the up move Meta ($META) had based on the print and earnings per share, before the market figured out the internals — and then hammered the stock.

Obviously Google ($GOOGL) wet the bed too:

https://www.zerohedge.com/markets/msft-rises-azure-beat-bookings-shrink-and-backlog-stalls

Position: None

BY Doug Kass · Oct 28, 2026, 4:55 PM EDT

Market Postscript

* Here are my thoughts following the plethora of EPS releases after the close…

With Google’s ($GOOGL) miss (the deceleration in its core business was unanticipated by every panelist on “the show”), Meta’s ($META) continued awful share price action, Nvidia’s ($NVDA) price rollover threatening chart support, Amazon’s ($AMZN) lackluster share price action (and underperformance) and some possible toppiness in Apple’s ($AAPL) share price, we are left with one… Microsoft ($MSFT).

Meanwhile, ServiceNow’s ($NOW) disappointing results (the company cut subscription revenues for the full year) will likely weigh heavily on software stocks (which were market leaders) tomorrow morning.

I remain independent in view.

As I said in response to subscriber jryan, most stocks do not meet my standards to buy and I won’t change my process or discipline — even if Perma Bulls Tom Lee and Dan Ives (confidently) see clear skies ahead…

The S&P Short Range Oscillator registered 1.84% (more overbought than the prior day) and I ended the day with a large short position in SPY

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Position: Short SPY (L)

BY Doug Kass · Oct 28, 2026, 4:51 PM EDT

Now Large-Sized on SPY Short

I have moved to large-sized SPY short at $774.19.

Position: Short SPY (L)

BY Doug Kass · Oct 28, 2026, 4:11 PM EDT

Adding to Shorts

Bonds down, crude oil up.

I am adding to shorts.

Position: Short SPY (M)

BY Doug Kass · Oct 28, 2026, 12:00 PM EDT

Positions: None

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Posted by Doug Kass

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." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.

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