NEW YORK ( TheStreet) -- Equity markets continue to worry about the ongoing issues in Washington and as a result, have seen more selling pressure. TheStreet's Debra Borchardt has the morning rundown on what to watch for Thursday.

Entering the third day of the government shutdown, eyes are starting to shift to the debt ceiling debate, which many consider as a much more important issue.

The Treasury expects to hit the debt ceiling on Oct. 17 and because political compromise looks difficult to achieve, the CME raised its margin requirements by 9%.

Borchardt said that although Tesla Motors ( TSLA) is finally pulling back because of an online video of a burning Model S and a downgrade from Baird, the stock is still up over 400% year-to-date.

Shifting stocks, she went on to say that hedge fund manager Bill Ackman, notorious for his large short position in Herbalife ( HLF), would be shifting strategies.

Now 40% of the position is being held in LEAP put options, rather than short stock. The move comes after rumors that the company may seek to raise $2 billion in a bond offering to fund a large share buyback program.

Finally, Sterne Agee upgraded Five Below ( FIVE) and raised its price target to $56. The firm claimed it has potential with same-store sales and store growth, while catering to the value shopper.

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Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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