Share this page!

Dougie Kass Profile picture
Twitter logo
18 Dec, 6 tweets, 3 min read
@realmoney

Dec 18, 2020 | 06:09 PM EST DOUG KASS
Taking Off Some From Bank Holdings in the After Hours
* The share repurchase news may mark a near-term top in the banking sector

For the first time in almost a year, I am scaling back some of my bank stock holdings now -- in
after-hours trading.
Though a bit unexpected (from the standpoint of timing) the buyback news after the market's close likely marks a near-term top in the shares of the major money center banks -- which have gotten extended and overbought with the late gaps higher:
* Citigroup (C) is trading at over $62.50 (+$3.50)
* Bank of America (BAC) is trading at $30.05 (+$1.40)
* JPMorgan (JMP) is trading at $125.75 (+$6.70)
* Wells Fargo (WFC) is trading at $30.02 (+$1.01)
* XLF (XLF) is trading at $29.55 (+$1.06)

Given my
sour market view and assessing the sector's near term (three to six month) reward v. risk, the move from November (culminating in this evening's move higher) has produced a less attractive upside vs. downside.
I remain enamored with the intermediate to longer term outlook for
bank stocks, but I am taking my $XLF, $BAC, $C, $WFC and $JPM holdings from very large- to medium-sized now.
This move is a bet that I will be able to add back to my bank holdings at lower prices than the stocks are now trading in the after hours.
More on Monday. @jimcramer
@tomkeene @SquawkCNBC @cnbcfastmoney @riskreversal @ScottWapnerCNBC @carlquintanilla @threadreaderapp unroll

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Dougie Kass

Dougie Kass Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @DougKass

Dougie Kass Profile picture
18 Dec
@realmoney
Dec 18, 2020 | 09:29 AM EST DOUG KASS
A Word Of Caution
Yesterday saw the obliteration in a number of speculative stocks.

I don't own SPACs because many are not analyzable -- and my investment methodology is fundamentally-based.

Others don't seem to care -- as
the upside attraction of chasing "shiny objects" offsets the risks and the general lack of knowledge of the companies.

I fully get their view, but I do not share it. I will never purchase shares in a stock that I don't understand or that is trading below intrinsic value simply
because the share price is rising.

The latter approach of speculating has worked out fine for many -- but I am fearful that the strength of recent months may no longer continue.

Caveat emptor.

Again. @jimcramer @tomkeene @davidfaber @riskreversal @ScottWapnerCNBC @business
Read 4 tweets
Dougie Kass Profile picture
17 Dec
@realmoney Dec 17, 2020 | 08:12 AM EST DOUG KASS
I Like Gold More Than Ever
* Our politicians and central bankers have lost their collective minds as short-term thinking (and policy) has replaced long-term planning

Over the last few weeks I have moved back to a very large long
position in gold, as represented by SPDR Gold Shares ($GLD) .

Both on the fiscal and monetary side I believe our officials have lost their collective minds.

Undisciplined and non-productive spending continues to run amok and so has our nation's bloated debt load and twin
deficits while the rationalization for enormous infusions of liquidity by the Fed is now going beyond the pale.

With real interest rates in deeply negative territory I believe the price of gold may begin advancing more rapidly -- even, perhaps, bitcoin-like" in 2021 --
Read 4 tweets
Dougie Kass Profile picture
16 Dec
@realmoney one timer!
Dec 16, 2020 | 09:07 AM EST DOUG KASS
Is Mr. Market Secretariat or a Cheap 'Tuesday Night' Horse?
* Rosy Scenario has taken over the investment playing field "as price has a way of changing sentiment" (hat tip to Divine Ms. M)

* Unprecedented liquidity,
historic monetary largesse and zero-commission trading have been the market's drugs; they will not be available at every corner forever

* The market is a fickle temptress... buying equities over the intermediate term at currently stretched valuations has historically been a
poor decision

* The stock market may end up resembling a cheap claimer, a "Tuesday night horse" rather than Secretariat!

* Consider that the Dunning-Kruger effect (more on that below) may now be in force! @jimcramer @tomkeene @business @lizclaman @carlquintanilla @riskreversal
Read 4 tweets
Dougie Kass Profile picture
15 Dec
@realmoney
What's more "real" - the charts of General Motors and WalMart or the charts of SPACs and the other "shiny objects" of affection?

Well, they both categories are "real." but I would argue that the charts of $GM and $WMT - which have moved steadily lower from their
recent highs (GM from $46.71 to $41.62 and WMT from $153.65 to $145.65) - may foreshadow some broader market concerns.

Don't get me wrong, trade whatevs makes you money - if you can profitably trade speculative stocks, not because they represent fundamental value but because
the share price is taking a northerly route as momentum is your best friend.

But my focus is on the larger market, here - and the deterioration in some large cap market leaders is another reason to have healthy skepticism of the market's overall direction.
Read 4 tweets
Dougie Kass Profile picture
10 Dec
See you all on Monday... from @realmoney
dougie kass • 14 minutes ago
Tesla and Twitter...
Not surprisingly not a word about $TSLA share fall from Tesla fan boys (and girls) on Twitter today.
But, god forbid the stock goes up in my (short) face!
Twitter is a cesspool of
anonymity, dogma, hatred and "I told you so's."
I am trying to stay off Twitter more and I no longer own the shares (having sold at $50-$51 before the last quarterly report (which was disappointing).
With Trump riding into the sunset in January I feel his continued tweeting
will have a diminished impact on daily average users (unlike its potent and positive impact) over the last four years.
I also think that Fox, MSNBC and CNN ratings will dive.
Dougie @jimcramer @tomkeene @business @lizclaman @ScottWapnerCNBC @SquawkCNBC @cnbcfastmoney
Read 4 tweets
Dougie Kass Profile picture
8 Dec
Why I reduced my long standing $AMZN long yesterday and why I further reduced this morning:
@realmoney

Dec 08, 2020 | 10:15 AM EST DOUG KASS
I Further Reduced My Amazon Long
* This could be a big call... or not!

* This "info" could also be the reason for Walmart's a big call
... or not!
(which we sold out at $150-$152) weakness

I have further reduced my Amazon (AMZN) investment long to small-sized.

I wrote this yesterday:

Dec 07, 2020 ' 02:50 PM EST DOUG KASS

I Am Reducing Amazon From Very Large-Sized to Medium-Sized
* For the first time in
quite a while I am lowering my Amazon position based on possible evidence of slipping backlogs

* Mine is clearly a minority view and I have not seen this conclusion shared on the sell-side

I recently published a column, "Pulling Forward" in which I cited:

"...that in certain
Read 8 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!

Like this author's thread?

Get emails when @DougKass has new unrolls!

Check out other threads from @DougKass!

Read all threads by @DougKass