While I don’t think we’re there just yet all it’s going to take is one minor piece of positive news for a straight up ball-cutting bull rally. Everyone is so tweaked at the moment with fear and uncertainty that one of two things will happen - a crash or a solid rally. I don’t see us slowly going down the corkscrew anymore. The stakes are too high at this point with FRE, FNM, LEH, etc being focused on.

Oh, and even if we don’t get that news, the shorts have to cover at some point…. just look at FRE right now…. serious short covering looks to be going on. Think has jumped 10% or so in less than 20 minutes. Be wary of short positions in financials at this point. If you must dance with that devil, protect yourself with a jimmy (I mean option) cap (hedge).