Doug Kass

Everyone's favorite bear, Doug Kass, has crawled out of bear den to offer up the following today:

"Arguably, the market has begun to decouple from fundamentals; instead, liquidity has overcome almost any other influence as every little setback has been countered with an avalanche of buying. It has fed upon itself, and it has contained corrections as many money managers play catch-up and chase strength. Hedge funds, in particular, are moving in; according to ISI, net exposures (at 51) are at a new post-March high.

Even technicals have taken a backseat to liquidity. For example (as my favorite technician reminded me), the recent two-week rally has been accompanied by a low put/call ratio (0.52). The last time the equity-only put/call was this low (summer 2002), a six-week correction ensued." - Doug Kass

Is it just me or does it seem like the bears only come out only on down days for the market to offer up their opinions?