The S&P Short Range Oscillator remains in oversold territory at -4.72% vs. -4.56%.
This sentiment gauge coupled with the recent price weakness have partially been responsible for having me tactically cover my index shorts (for a profit) and resulted (in the past week or so) of selling rips and covering dips.
The deterioration in market breadth (“not broadening”) that we have been highlighting since July (in the Russell, Equal Weighted S&P and McLellan indicator) presaged the recent broader market weakness.
As noted in my recent Market Outlook column I remain bearish and intend to reestablish my index shorts subject to price and the fundamental backdrop — probably sooner than later.
Ergo, the absence of index shorts in Seabreeze’s portfolio is likely a very temporary condition!
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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