Doug Kass on Fast Money: Looking for 4-7% Market Pullback

Earlier, Doug Kass appeared on CNBC to give his trading outlook. Kass was somewhat bullish on housing, downplaying the recent Case-Shiller release on the grounds that it was a lagging indicator. He stated that there was real evidence that the residential real estate market has turned. Kass pointed to individual areas of the country not encumbered with a large supply of foreclosures. Kass stated that the housing recovery is being masked by particularly weak regions. On the market overall, he stated that stocks were very vulnerable to a decline of 4-7%, and many stocks will drop 10-15%. Kass stated that it rarely pays to buy stocks when 85% are trading above their moving average. Looking further ahead, Kass said that it was extremely important to aknowledge that Obama is likely to gain presidency back. While Kass himself is a Democrat, he agrees that a Republican president would be more favorable to business. Kass would be a buyer of stocks after a pullback. Rising oil prices are a significant headwind to an advancing market. Kass stated that, historically, it does not pay to own stocks when housing is rallying. He stated that bonds should have a warning label on them. After a pullback, Kass stated that he would buy Home Depot HD, Lowe's LOW, and Etrade ETFC beause of the company's home equity loan portfolio. He also likes Bank of America BAC and Citigroup C because of their exposure to housing. Kass stated that he doesn't own Apple AAPL because he is "stupid." Still thinks the Apple story is getting long in the tooth.