Friday, March 1, 2013

Sequestration


S&P 500 Falls as Senate Rejects Plan Replacing Sequester
Markets were holding onto gains until a sharp reversal to close the market on a bearish note.  This will carry into the Asia session.

JC Penney gets slapped down, and Ackman will be taking more heat on his fund.

Icahn gets two board seats on Herbalife and continues his quest to destry Ackman.  Very interesting change of tone on his phone call to Bloomberg - probably because he knows Ackman's position is definitely at risk.

Looks like a dead cat bounce, might wait for lower prices to initiate my position in QAG.

US GDP get revised higher, but some points on downside risks are worth keeping in mind.  The Budget cuts and the sequester is something that could spook or give an excuse to take profits in the markets.

First the CEO takes the stake, then confirmation of the Stokes position, has the TEN stock performing well the past few sessions.  I've been trying to catch a bid at 33c.

Equity risk premiums are definitely low right now.  Given an extended period of low volatility gains, conditions are ripe for volatility.