Buying and short squeeze moving markets up

A lot of short covering and quick profit taking has the markets inching upwards. But I am not counting on the market holding any gains going into the weekend.

But on the flip side of the coin one has to think of what might happen over the weekend. There will likely be a lot of the Sunday morning talk shows addressing the financial markets and the mess of the markets. If there are bearish comments from the Government over the weekend then longs will be burned and shorts will be rewarded. And if there are bullish comments about the markets over the weekend the just the opposite will be true.

So how do the big money movers position themselves before going home tonight. I suspect there will be a lot of hedged trades placed. For example, one might hold a long position in a badly beaten up bank stock and at the same time might go short on the XLF. Then on Monday morning he keeps the one that is gaining and closes the other. There is no clear direction of where the markets will be at the open on Monday morning. So most of the big money will most likely carry long and short trades into the weekend. And some will close out all trades and sit in cash until Monday.