Although stocks opened lower this morning, many traders I spoke with last night said they are interested in buying stocks to cover short positions over the weekend.
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Traders work on the floor of the New York Stock Exchange.
"The problem is that you don't know if this is going to be one of those weekends," one said.
By "those weekends" he meant one in which government officials quickly concoct some kind of rescue package. News of a weekend rescue—perhaps of European banks—could spark a "rip your face off rally" Monday.
Josh Brown at Reformed Broker captures the feeling perfectly.
"If you stay short here heading into the weekend, you're a pig. An absolute hog," Brown writes.
He goes on:
And that's coming from me, someone who's been more bearish than almost all financial bloggers for six months now. You know what these European Ministers are going to do on Sunday night. They are freaking the f***out over there, EVERYTHING is on the table. The question is not "will it work" - the question is "are they capable of trying it?"
They are. Remember we talked about "suspending disbelief." Deus Ex Machina is the norm in crashy markets, not an exception.
If a lot of people feel like Brown—and based on my conversations with traders last night and today, a lot do feel that way—expect to see a good deal of upward pressure on markets today as traders scramble to get flat going into the close.
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