The Best of Kass

NEW YORK (TheStreet) -- Doug Kass of Seabreeze Partners is known for his accurate stock market calls and keen insights into the economy, which he shares with RealMoney Pro readers in his daily trading diary.

Among his posts this week, Kass wrote how the markets are close to a panic stage, why he is more intellectually more bullish than his portfolio would indicate, and why Bank of America shares should stage a breakout.

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Discipline Trumps Conviction
Originally published on Friday, June 1 at 2:27 p.m. EDT.

In a market that's gone completely spaceballs, call me Colonel Sandurz.

Dark Helmet (Rick Moranis): What's the matter, Colonel Sandurz? CHICKEN?
-- Spaceballs

We are close to a panic stage in the markets, as the Nasdaq and S&P 500 approach 3% drops.

Normally, I would be a buyer -- at the very least take a SPDR S&P 500 ETF Trust(SPY) rental) -- but there is nothing normal about this market.

Net-net, I added only about 1% more long exposure (still in the mid-30%), which, to me, is crazy considering the developing values. But there is so much I don't understand in this selloff that I am trying to remain disciplined.

If I was smart -- and I haven't been lately -- I would fade my remarks and buy. But, color me chicken.

At the time of publication, Kass had no positions in stocks mentioned.

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A Contrarian's Nightmare
Originally published on Thursday, May 31 at 11:57 a.m. EDT.

Respect the trend.

I am currently about 35% net long (excluding my large short position in bonds).

As expressed both in my opening missives on Tuesday and Wednesday, I am intellectually far more bullish than expressed in my portfolio exposure, but, at the same time, I am mindful of the message of the stock market, the message of the bond market -- what does a 1.55% 10-year yield imply for growth? -- and the technical damage that has been inflicted in the world's equity markets.