Short Squeeze on the Markets

DOW futures up 300 points. Unfortunately, I didn't take profits Friday. Too late, thought I should sell bonds. The thing to watch is gold. If it falls, it might be a nice time to pick up an ABX call.

In other news, the price of coal in China is plunging. This could be a volatile month, so I need to keep my eyes peeled for any confirmation of commodities plunging in China.

*puts pinky to mouth* "One triiiiiiiiilion dollars."
I have just one question: How long will it last?

Oh, and Russ Winter says put the shorts back on if the market soars on Monday. Watch morning action. Mish reminds me that the short squeeze on Fannie Mae lasted four days.

I just came up with another question: How much is Spain going to contribute to its own bailout? This is a short-term fix by squeezing the shorts. But details are light, and there is also the question of implementation as opposed to talk. As Mish says, you can't defend the euro by printing more of them.

As of 1am, the euro Stoxx market is up 7%. The euro is up two cents to $1.30. And the S&P 500 futures are up 45 (4.1%). Let's see how quickly the shorts cover and what's left under the market.