Unless they issue another press release extending their ban on short-selling, then the markets should be allowed, once again, to short the stocks of financial companies. Based on the SEC website they state:

“On Friday, October 3, 2008, the President signed the historic Emergency Economic Stabilization Act of 2008 (H.R. 1424), aimed at stemming the credit crisis.  Accordingly, the Commission’s Emergency Order that prohibits persons from selling short the securities of financial institutions will expire at 11:59 p.m. ET on Wednesday, October 8, 2008.

This is definitely an unknown variable heading into today’s market open. Do the shorts jump back on the bandwagon, guns a-blazing, or do they shrug off the news believing that the financials will be a difficult play on a market this oversold? It could create a lot of extra supply in the markets, which keeps the markets from advancing substantially.

Overseas markets picked up some descent gains amid a European bailout plan and U.S. Futures are looking pretty good as well with the Nasdaq up 34 and the S&P up 16 so far this morning.

We have as of late stayed mainly in cash during this market decline, especially with the Fed tinkering with the markets as they have.