if u r up nicely on shorting spy, take a chance and let some of your holding ride on sequestration. there are only 5 more working days left until March 1st. personally me don't think Washington and congress will pass anything, at best they will "kick the can (sequestration)" again. don't know how the market will react to "kick the can" down the road again; how long can they continue to do that.
From observation those receiving money from the government, spend the money like it will come in forever. They save next to nothing. So if the money stops, there will be no spending and the economy will take a tremendous hit.
Sentiment: Strong Buy
I am right on the verge of covering my shorts -- including my oil shorts -- since I don't think this dip will turn into a dive. The sequester at some point will be avoided, only question is when and how low the market needs to go to get the deal done. A can kick will be enough for market to turn back up. And I don't really buy the rumor yesterday suggesting the Fed will undo qe. But getting a little greedy, hanging on, thinking the deal won't get done before the weekend and enough weak longs may fold to hit my target at least on oil (UCO 28.75).
Well, doesn't surprise me that I should have covered yesterday. Simple, don't fight the Fed. No country for shorts. Roubini is short to mid term bullish, long term (2-3 years) catastrophic (see Yahoo Finance news). He makes sense, though the time period for his crash call is just a guess, imo.
it's a joke there are no spending cuts just a cut in spending growth an illusion if you will. 800,000 people losing there jobs in defense lets see if 1 loses a job. O is back to fear tactics again so he can continue spending. Markets could care less they already have there money via the fed