The Treasury announced that they were planning on selling shares of Citigroup on April 1. Most analyst reports and articles I read assumed that the Treasury was waiting for earnings to pass before beginning to sell. Insiders generally wait until after earnings before selling shares in order to avoid insider trading charges. While the Treasury is not considered an insider it makes sense that they would want to avoid any appearance of improper trading.
I am baffled as to why the Treasury has still not announced when the sales will start, now that Citigroup's earnings have passed. I am now reminded that trying to figure out what bureaucrats are thinking is an exercise in futility.
Part of the reason I was willing to short aggressively during this seasonally strong period was that I thought the government would start selling their nearly $40 billion stake in Citigroup, which would help offset some of the seasonal strength. Now that my assumption is in question I am not going to be as aggressive putting out the shorts I took in on Friday until the government announces a share sale. If the government does not announce a share sale I will simply wait until early May before putting out more shorts.