GO
Loading...

Doug Kass: 3 Ways to Play Market Snapback

Wednesday, 7 Jul 2010 | 6:11 PM ET

One day after he told Fast Money the market had put in a bottom, Doug Kass of Seabreeze Partners returns to Fast Money -- in the wake of a massive rally -- and reveals 3 of his favorite bullish trades.

In anticipation of a snapback in the second half, Doug Kass recommends looking at the technology sector. Moving forward, Kass would go with Google, Amazon and Apple . Given that Kass thinks we've put in the low for the year, these are the types of names investors can go out and buy.

Of course, many strategists have been bullish tech. But when Kass, a celebrated bear, becomes a buyer, we listen. After all, he has a certain knack for timing it right.

Less than a week before the S&P 500 hit a generational low of 676 on March 9, 2009, Doug Kass of Seabreeze Partners went on CNBC and predicted the bottom.

With Wednesday's rally, yet another prediction of his proved true. Yesterday, Kass told the Fast Money desk that the market has hit the low for the year.

Although Kass expects to see some "back filling," he thinks the overall direction of the market is higher with most investors missing the signs.

Word on the Street
The Fast Money traders take a look at today's top business stories.

"High yield bond rates were down, 2-year swap spreads were down, 3-month LIBOR was down and the euro was up."

In addition, his models suggest stocks are deeply oversold, and the ratio of bulls versus bears is near the March 2009 levels.

All signs that the next move is higher, Kass says.

What's the bottom line?

Like Kass first told us, "We have reached a yearly low for the market for the year. This business is going to be fun again and it's going to happen sooner than most people think."

Editor's Note: The conversation with Kass begins at 8:05 in the Word on the Street video above.


______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On July 7, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; inerman and Finerman’s Firm owns (AAPL); Finerman’s Firm owns (AEO); Finermans’ Firm owns (ANF); Finerman’s Firm owns (BAC) stock and calls; Finerman and Finerman’s Firm own (BAC) preferred; Finerman and Finerman’s Firm owns (BBY); Finerman owns (BP) calls; Finerman and Finerman’s Firm owns (C); Finerman and Finerman’s Firm own (CVS); Finerman owns (GLW); Finerman & Finerman’s Firm owns (GOOG); Finerman & Finerman’s Firm owns (HPQ); Finerman & Finerman’s Firm owns (IBM); Finerman & Finerman’s Firm owns (JPM) stock & calls ; Finerman’s firm owns (PM); Finerman’s Firm owns (RIG); Finerman’s Firm owns (TGT); Finerman’s Firm owns (WMT); Finerman’s Firm is short (IJR); Finerman’s Firm is short (IWM); Finerman’s Firm is short (MOY); Finerman’s Firm is short (SPY); Kelly Owns (BP) Puts; Kelly Is Short (GS);Terranova Owns (BAC), (MRVL), (MYL), (MON), (APC), (GMCR), (AXP), (TER), (XCO), (GOOG), (AMZN), (GS), (CVS), (ABT), (HES), (ADI), (ADBE), (AKAM), (EMC); Seymour owns (AAPL), (BAC), (GOOG), (INTC), (POT), (WBD); Adami owns (AGU), (BTU), (NUE), (C), (GS), (INTC), (MSFT); Adami’s wife works at Merck

For Joe Terranova:
Terranova works for (VRTS)
Terranova is chief market strategist of Virtus Investment Partners, LTD.
Virtus Investment Partners owns more than 1% of (CASS)
Virtus Investment Partners owns more than 1% of (LDR)
Virtus Investment Partners owns more than 1% of (LPHI)
Virtus Investment Partners owns more than 1% of (MGRC)
Virtus Investment Partners owns more than 1% of (XLB)
Virtus Investment Partners owns more than 1% of (XLP)
Virtus Investment Partners owns more than 1% of (XLY)
Virtus Investment Partners owns more than 1% of (XLI)
Virtus Investment Partners owns more than 1% of (XLK)
Virtus Investment Partners owns more than 1% of (XLU)
Virtus Investment Partners owns more than 1% of (SUBK)
Virtus Investment Partners owns more than 1% of (WDFC)
Virtus Investment Partners owns more than 1% of (YDNT)
Virtus Investment Partners owns more than 1% of (DRYS)

For Brian Kelly:
Accounts managed by Kanundrum Capital own (AUY)
Accounts managed by Kanundrum Capital own (GFI)
Accounts managed by Kanundrum Capital own Gold
Accounts managed by Kanundrum Capital own Treasuries
Accounts managed by Kanundrum Capital own US Dollars
Accounts managed by Kanundrum Capital ARE short (AMZN)
Accounts Managed By Kanundrum Capital Are Short (BCS)
Accounts managed by Kanundrum Capital ARE short (RCL)
Accounts managed by Kanundrum Capital ARE short (XLY)
Accounts managed by Kanundrum Capital ARE short (XLE)
Accounts managed by Kanundrum Capital ARE short (AFL)
Accounts managed by Kanundrum Capital ARE short (CME)
Accounts managed by Kanundrum Capital ARE short (EWI)
Accounts managed by Kanundrum Capital ARE short (EWO)
Accounts managed by Kanundrum Capital ARE short (GS)
Accounts managed by Kanundrum Capital ARE short (HIG)
Accounts managed by Kanundrum Capital ARE short (RKH)
Accounts managed by Kanundrum Capital ARE short (XLF)
Accounts managed by Kanundrum Capital ARE short (XLI)
Accounts managed by Kanundrum Capital ARE short (FCX)
Accounts managed by Kanundrum Capital ARE short (GFI)
Accounts managed by Kanundrum Capital ARE short (JOYG)
Accounts managed by Kanundrum Capital ARE short (XLB)
Accounts managed by Kanundrum Capital ARE short (XLK)
Accounts managed by Kanundrum Capital ARE short (V)
Accounts managed by Kanundrum Capital ARE short (PCAR)
Accounts managed by Kanundrum Capital ARE short (COF)
Accounts managed by Kanundrum Capital ARE short (KMX)

Doug Kass
**No Disclosures**

Gary Shilling
**No Disclosures**

Rob Samuels
**No Disclosures**

Heather Bellini
**No Disclosures**

Mike Khouw
Cantor Fitzgerald makes a market in (CSX)

CNBC.com with wires

  Price   Change %Change
AMZN
---
AAPL
---
GOOGL
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report