Shorts are scrambling to cover their positions in the financials ahead of the

Fed. As they go higher I am tempted to blow them out myself if only to get in shape if they get hit tomorrow.

This financial group is the one I like the least ahead of a tightening. (See my 1994

series). These stocks are most affected negatively by the higher short-term rates.

Why are the shorts covering? Simple. They fear a statement from the Fed, notably something like "We are confident, in light of the recent softer economic numbers, that we no longer need a tightening bias."

That statement would cause a spike in the financials that most short-sellers couldn't handle.

I don't think that we will get such a change. But I don't blame short-sellers for panicking ahead of that possibility because I know I would be one of those people reaching for

Citigroup

(C) - Get Report

and

Mellon

(MEL)

and

Wells Fargo

(WFC) - Get Report

if I got that news.

Random musings:

Am I the only one who doesn't like the HoneyDots? Can I get a box of trained attack weasels and sic them on the advertising agency that created those horrible Williams ads?

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.