AP reported last night an EMERGENCY meeting has been called by the SEC on short selling for this Monday. Given this announcement came after the market close Thursday, there are now precious few days left to unwind the substantial short positions on C and others. Not to mention the many investors that will anticipate the nature and direction that a heavily shorted stock will assume given such an announcement. My guess is that the long position will be clearly in vogue. There might even be some signs of a strange new phenomenom - panic buying.
It is difficult to speculate exactly how much naked shorting there is but some say it is quite rampant. If this is the case, we might have the genesis for the mother of all rallies. If this is correct you heard it here first.