by Doug Kass
David Stockman’s Contra Corner
“Can I get an amen?” — Reverend LeRoy, The Church of What’s Happening Now, The Flip Wilson Show
As I’ve previously noted, I believe a broadening and important market top is in place, and that a relatively meaningful portion of stocks’ daily moves are exaggerated by gamma hedging, risk parity and other quant strategies.
If I’m correct, buying on strength in an attempt to sell on more strength isn’t advisable — and it’s certainly not the route that I’m taking in today’s market. Let’s look at why: