Doug Kass: 3 Ways to Play Market Snapback

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.

"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.

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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

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Doug Kass
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