Thursday, March 1, 2012

Doug Kass: Short These Stocks Ahead of Sell-Off

“It rarely pays to buy stock when 85% of the S&P trades above its 50-day moving average as is the case today.” 

"The market also tends to decline when only a small number of S&P stocks are oversold, again the case now."

Historically stocks don't perform well when 10-week moving average of gasoline prices rises. “At the rate they’re moving now– historically it has not paid to own stocks.”

1. Discretionary consumer based companies: Kass suggests shorting American Express, Regal Cinemas, Henry Schein, RTH
2. China: Kass says to play it short FXI
3. Companies leveraged to capital markets: Kass tells us he's shorting Goldman Sachs, Morgan Stanley

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