Out Fox The $treet

So far he has been 2 for 2. Kass called the 'generational' bottom back in March 2009 and again called a bottom at the end of June leading to the large rally in July. He isn't overly bullish but he doesn't see the market going much lower with SP500 earnings of $90 next year. Stone Fox is much more bullish then Kass, but we do agree with his reasoning that the tax and regulation issues holding this market back will likely start to loosen up. The Democrats have a multitude of reasons to become more market friendly as their policies of the last couple of years have done nothing for job creation and the economy. Some bullish moves should help the market going into the November election. Kass has been the best caller of bottoms over the last couple of years so we'll stick with his predictions until he is proven wrong. Not to mention that the SP500 has a ton of support over the next 15-20 points lower so its not rewarding to go short at these levels. Clip from Fast M...

Doug Kass is one of our favorite bottom pickers. Though he claims to not be a permabear he is typically paid to short stocks. Whenever he calls a bottom its typically of more meaning then a bull. After all he called the Generational Low back in March of 2009 and now hes placed a bet that the lows have been hit for 2010. Not a big fan of Yahoo! Tech Ticker but today they had OptionMonster's Jon Najarian as the guest host so it was worth checking out.

Oddly one of the most perma-bears known in the financial world has become net long. This is not the first time that he has become bullish as I wrote about on Oct 7th. That turned out to be close to the internal bottom of the market on Oct 10th. Peronally I put more faith in a investor like Kass then an academic like Roubini. In this long article on theStreet.com, Kass outlines why the negativity in the markets has become so great that he has become bullish. He still expects the recession to last until Feb '09 making it the second longest on record. I'm still optimistic that the LEI (Leading Indicator Index) will lead us out months before that. Its interesting that he mentions a whole list of stuff that he wants to see before becoming overly bullish, yet not one entails this predictor of the future. The average recession in modern financial history has lasted 10.5 months. The longest recession was between 1929 and 1933 -- real GDP dropped by over 25%! --and lasted 43 months; th...

According to acclaimed Bear Doug Kass, the tail might be wagging the dog . Ironically, he has become bullish because he sees excessive shorting of the S&P 500 futures. In his theory, this is being done to hedge against potential losses on long positions that aren't as liquid. Has the world gone mad? Perma bull Jim Cramer has been suggesting that investors sell, sell, sell and perma bear Kass has actually become bullish. Beginning last Monday, I began to see a number of big hedge funds in the S&P 500 futures pit, boldly selling futures to hedge their core long holdings. As the market dropped precipitously on both Friday afternoon and Monday afternoon, they got ever more aggressive -- according to my sources, more aggressive today than at almost any point in a decade or more. This strategy is a classic tactic one sees at panic/capitulation lows as hedge-hoggers sell short what they can sell easily -- the S&P futures market is deep and liquid -- while they retain what they...