The Dow's down 10%? It's time for some buying, says longtime bear Doug Kass

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Critical information for the U.S. trading day

The Dow's dive, the latest government shutdown and the Winter Olympics just might be scoring the gold, silver andbronze medals -- if you go by what's dominating the news flow at the moment.

The market's slump has been "a normal pullback," but it's "creating quite a stir" because we haven't had one for solong, says London Capital Group'sJasper Lawler. The research head has been reflecting on the worldwide stock slide thathas left the Dow 10% below last month's all-time high (, in what many consider an official correction.

In our nation's capital before sunup, Congress got the curling stone moving, so to speak. The House and Senate passeda budget bill (,putting the federal government on track to end its partial shutdown (, the second this year. President Trump justtweeted that he has signed the bill (, which will reopenthe government.

At least today's cheery official kickoff ( for the Pyeongchang Games might distract everyone from Wall Street's bloodbath and Washington'sdysfunction. Longtime equities bear Doug Kass has already turned more chipper.

"It might be time to consider some prudent, opportunistic buying. I certainly am," says the fund manager for our callof the day, changing his tune a bit after sounding warnings about stocks last year ( and the year before (

"We're no longer materially overpriced, just somewhat overpriced," the Seabreeze Partners president writes to hissubscribers ([value][date]=2018-02-08#im-turning-less-20180208) over at

"Large cash reserves are still in order -- but maybe not as aggressively as two weeks ago, depending on one's timeframe and risk profile."

Other strategists have been singing a similar song, warbling about "relief from overvaluation (," though Jim Rogers ( appears to be lip-synching toMetallica's "Enter Sandman" again.

Getting back to Kass, he acknowledges that "many should wait until the ground hardens," but adds that he's more boldand anticipatory, and some stocks are attractive.

"I'm attracted to longs when there's panic in the marketplace -- as there is now," he says.

Read:Media mentions of 'buy the dip' have never been higher. So ... buy the dip? (

And see:Panicked about a market crash? All you need to know fits on a note card (

Key market gauges

Futures for the Dow , S&P 500 and Nasdaq-100 are pointing higher. The Dow , S&P and Nasdaq Composite are all downmore than 6% for the week, with the blue-chip gauge on track to notch its worst week since 2008.

European equities ( about 1% lower, after Asian markets capped their worst week in years with more heavy selling(

Bitcoin ( holding above $8,000, while oil drops. Gold is edging down, as the dollarindex steps up.

See the Market Snapshot column ( for the latest action.

The chart


The trader/comedian behind the StockCats Twitter account has shared the above chart, which seems to capture what manyinvestors were thinking this week.

The line shows a plunge in the percentage of S&P 500 stocks holding above their 50-day moving average, a key level forchart watchers.

And the bonus chart below shows how Ray Dalio's stupid-to-hold-cash call isn't looking so good.

Read more:Hey, Ray -- who's feeling stupid now? (


The buzz

Could there be more staff reshuffles at the White House? Chief of staff John Kelly reportedly has suffered a seriousblow ( to his standing from thebungled resignation of aide Rob Porter, who has been accused of domestic abuse. One of Porter's ex-wives told CNN thathe asked her to downplay ( her allegations.

Facebook (FB)says it's testing out a "downvote" button (, not a "dislike" button, while Amazon (AMZN)ispreparing to launch a delivery service ( that will compete with UPS (UPS)and FedEx (FDX) .

Nvdia (NVDA)appears on track for a big up day after eye-popping earnings (), and traders like FireEye's (FEYE)results( aswell.

As the Winter Olympics get going in South Korea, the host country's president says he will host a lunch ( for thesister of North Korean leader Kim Jong Un.

And why is the Cornhusker State so curious about curling?


The quote

"I didn't come up here to be part of somebody's club. I didn't come up here to be liked." -- Kentucky Republican Sen.Rand Paul ('s protestblocked lawmakers ( from voting on a budget deal by midnight, leading to the partial government shutdown that now looks over.

Random reads

Here's how that thief ( swiped a million-dollar bucket of gold off an NYC truck.

You just can't rely on cats:


A real estate exec in Japan allegedly forced a man in debt to cut off a finger (

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-Victor Reklaitis; 415-439-6400;