7/10/2015
By Charles Payne, CEO & Principal Analyst

“Now youse can’t leave.” That is my favorite line in A Bronx Tale; it is also the latest measure by Chinese officials.

China has put the clamps on its market and is prohibiting big shareholders from selling there by tilting the oldest rule of investing in their favor: stocks and the market move higher when there are more buyers than sellers.

In this case, the sellers are locked in the basement and threatened with being arrested while American investors cheer.

Thursday’s rebound of 6% was a big relief, but a drop in the proverbial bucket, considering losses since early June. It remains to be seen if the coast is clear, but the more involved the government gets with respect from stemming losses, the more jitters it creates. 

Now, Chinese officials can only hope that greed supersedes fear, but there are no worries about common sense; that was thrown out the window a long time ago. 

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Charles Payne
Wall Street Strategies

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