NEW YORK (TheStreet) -- Slowly but, well, ah, anyway. Slowly, the economy might be (could be) improving. It tends to do just that after a cold first quarter of the year hampers economic activity. The end of the West Coast port shutdown should also help. And it doesn't hurt that for a while now Fed policy has seemed determined not to screw things up.
Yesterday, Goldman Sachs gave its buy rating blessing to none other than Citigroup (C), which you have to read as being at least a start in the right direction for the financial sector. Toss in tepid bullishness on the big banks and the fact that sooner (or later?) interest rates will rise.
The cynic in me thinks that when the central bank does raise rates, the vast majority of investors will interpret that move as the end of the world as we know it in the 21st Century. I mean, why not? After all, Yahoo!'s front page yesterday morning had four headlined articles saying the stock market is in an uber-bubble! That has to be some kind of record.
Now for any contrarian, such a piling-on of these "Look at me, I am an expert" articles has to be a "get ready for an uber-squeeze" tip-off.
And what better way to catalyze that market set-up than to use an increase in interest rates as the excuse to get all the shorts caught once again on the wrong side of a very bunched-up trade.