Thursday, March 28, 2013

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Markets barely got even last night, and now futures are down.  Second night in a row where futures were negative premarket.  The euro jitters are still hanging, and the market looks like it's settling at a inflexion point.  I'm definitely reduced in equities, and will wait to see which way the current price action will resolve.

Italy appears to be headed for another round of elections after Pier Luigi Bersani was unable to form a coalition government

In the foreign exchange market, the U.S. dollar index climbed in early trade, and held near its highs for the duration of the day. The index ended higher by 0.4% at 83.23. Today's strength was due in large part to weakness in the euro which fell to 1.2770 against the greenback, its lowest level since November. 

Given the current uncertainty around EURO - it would be good to watch the EUR/USD like a hawk.

GME- Gamestop
Earnings tonight, 2.09 expected; may be in-line or a short miss, expect continued weakness due to digital sales of big titles.  Looking for a downside move in this stock.
It looks cheap, but earnings have been negative and may continue to trend lower, as we see a shift in the way video games are bought and experienced.  There are also risks of a short squeeze due to the high short %, a surprise earnings beat will see a huge spike in the stock.  I might look for some puts on this stock, rather than shorting it outright.