Trader Talk

Could September Be Up?!

I'm out of here for a few days, but in response to every trader who keeps screaming at me, "Why are we up almost 5 percent this week, Bob? What's changed? It's just the usual kick-the-can-down-the-road crap, right Bob? Hello?"

Oh, shut up already. Of course it's kick the can, but a lot of money can be made between here and the Resolution, or the Apocalypse.

Can't you just smell the crisis fatigue? Consider:

1) Stop the Lehman comparisons! Yeah, I know, Lehman relied on short-term funding, the European banks rely on short term funding, Lehman got shut down, therefore...enough. Lehman's bankruptcy blindsided the market. Greece with its debt yielding north of 100 percent on any give day is not exactly a surprise.

2) I wrote yesterday that there have been rumors of a European TARPfloating around, as the world's expert, Timothy Geithner, is touching down in Europe to educate the eurofinance ministers on how it works. Plenty of rumors that the Chinese and U.S. (through IMF) will participate. Okay, call it "The final Hail Mary." Several traders have.

3) So is the pain trade higher? For cryin' out loud, every trader is bearish, every trader is positioned heavily in cash or short, every trader thinks September will be a disaster.

That's why September will be up, right?

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