Selling short the market.
Yesterdays' massive rebound some say was due to reports that Regulators in France, Belgium, Italy and Spain will ban short selling on some selected stocks. I say we rallied in spite of that. They say it was because short sellers were manipulating the market, I say it is because they can't handle the truth.
While the world was in a panic those that kept their head found value in a market that was out of line with reality. Old man Potter would have cleaned up as those who were willing to accept pennies on the dollar for stocks that were obviously more valuable than people were willing to dump it at. The market works and if government officials listened to it as opposed of criticizing it we would not be in the mess that we are in.
There were signs even as the markets sunk into the depths of despair that there was indeed light at the end of the tunnel. Even as France gets a goose egg on growth and more signs that China's bank lending may be slowing, it is unlikely that the global economy is going to grind to a halt.
Oil prices have act like a beacon of light as the market has not given in to fear and has really done a god job of signaling stabilizing market fundamentals. A pullback in gold and a pullback in fear is a very important indicator that things might be getting better. We have to watch the Atlantic as things as far as weather seem to be heating up. Thank you for all the calls! I am glad I could bring sanity to the madness. See the world did not end!!!!
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at email@example.com.