"always a risk of a massive short squeeze"In no time in history...

"always a risk of a massive short squeeze"

In no time in history has there been more cash sitting on the sidelines and more positioned for the short side according to GSJBW. If the US does slow further then yes QE3 will be implemented.

So how does this translate into a high probability "capitulation" or collapse?

For me I'm slightly more aggressive and pre-empting a few positions to the long side now with +1 month view rather than just play the daily volatility which has been relatively easy of late given the extremes.

EU seem to have the political will at present to protect their banking systems integrity. All will be revealed by end of October.