If you haven’t watched Ackman’s presentation on HerbaLife, you should. It’s 3 1/2 hours long, but worth the time. Pershing Square is on a crusade to put HerbaLife out of business, yet his crusade doesn’t seem purely financial. Ackman projects a convincing argument of injustice.
Trying to get the month off to a good start today, and I’m mostly on ‘pause’.
We’re sitting at the bottom end of the range on the SPY, the biggest risk for my short positions would be a technical bounce here.
The other number which worries me today is 1.30 and the EURUSD 2% drop. It’s sitting 1.325 which feels very oversold. I was expecting 1.30 ish, but now that we’re here we should start to see a bounce. Will we?? The sentiment is still negative out of Europe and the reason this bothers me is that Europe is just a distraction! The strength in the dollar makes even less sense to me than gold at $1900. The markets have shifted from a flight to gold to a flight to the dollar. Frankly, I’d rather be in gold.
There are two unusual names which I’m starting to watch JC Penny, JCP, and Accenture Ltd., ACN. JC Penny Company Inc. is holding up better than I would expect, and Accenture has earning scheduled for October 12th.
Accenture caught my attention because there’s huge open interest on the October 44 puts. Accenture is trading at 52.75. I can only imagine someone’s expecting a very weak earnings release next week. The put/call interest on ACN is 0.91 so the sentiment is fairly bearish. This is something to keep an eye on as we run into earnings next week. If earnings and their outlook are weak this would be another bad sign for the SPX.