Saw this by Chris Rowe on May 11.

More Greek Bull? Believe it and Get Hammered! Short the Squeeze! Don't let the European governments play you.

Nothing great has actually happened over there in the last 48 hours, so if you're betting the skies will stay clear now that a bailout has been announced, you might want to reconsider your position.

Remember on September 19, 2008 when the S.E.C. tried to deliver a financial punch in the face to "the evil" short sellers in the U.S. by banning short-selling in 799 bank stocks? The market lost over 25% in 2 weeks, 35% in 2 months, and 45% in 6 months!

The European governments are simply manipulating their markets higher, and they are doing so with tax dollars! Markets aren't rallying in celebration of a solution. Instead, the eurozone is simply stepping in front of a big short position and buying tons of Greek bonds (and they're willing to do the same for whoever else needs help in that neighborhood). It's causing short-sellers, who realize there is new demand keeping prices from falling any further, to buy back their short positions, thereby causing a short-squeeze.

For perspective, consider this the opposite of what happened in the winter of 2008-2009. Hedge funds, whose clients requested cash, were forced to dump tons of stock in great companies that they didn't really want to sell. That pushed the prices of those great companies even lower.

Well, in the eurozone, the shorts don't think Greek bonds should advance, nor should the euro, but they're forced to exit their bearish positions ... pushing prices higher. But nothing has really changed in the last two days.

Even the United States (the world's largest economy, which has the largest quota to pay to the IMF) has its tax dollars being used by European governments to bail out Greece and company.

Let's book some bearish profits on the next downfall, just like we did from September to November, 2008!

Don't get me wrong, I'm not saying the same exact thing will definitely happen all over again, but it's certainly very possible. And if it happens, you're gonna profit from it. But at the same time, keep in mind that the U.S. government had been manipulating its equity market higher for over a year quite successfully. Can the eurozone do the same? I doubt it.

Let's remember one more thing: The euro-mess just happens to be the hot story of late. It's not the only thing that can smack this market down. Whether the eurozone bailout is a magical silver bullet or not, the fact is in the U.S., the economy is far from perfect. And now that we've seen a sharp jolt in the market, the bears will likely start to smell the blood.

Which Will Be the Fate of the Eurozone?
Sure, maybe a bunch of broke countries will be able to lend each other money. Sure. And heck, maybe it DOES make sense for the European Central Bank to literally accept, as collateral for loans, junk-bonds that have seen their default insurance (CDS) go from $5,000 to over $900,000 to insure $10 million of Greek debt for a five-year period. (And that's up from $250,000 in January of this year.)

But to me, that just doesn't sound like a rosy picture.

Hey, I'll be the first one to play both sides of the market. I have both bullish and bearish positions on right now. Soon I'll have a more bearish model portfolio, and as the market evolves, I will too. Financial markets are a dangerous place to "stick to your guns". So I strongly recommend you stay tuned and keep reading your daily dose of The Tycoon Report for updates on any changes in stance.

Until next Tuesday -- stay safe, stay hedged, limit your downsides, and don't believe the hype.

Wah....spot-on! on hindsight.