Bill Fleckenstein is a well-known bear on the market, and he has long been on the record claiming that stocks are overpriced and the market is due for a drop. But that doesn't mean he'd recommend being short. Actually, he says that shorting stocks has become all but impossible.
"Bad news doesn't really matter, and you can't really be short, because the Fed is putting in all this money," Fleckenstein said on Tuesday's "Futures Now." "It's been very difficult to see stocks decline—even bad news is pretty much shrugged off."
The contrarian says recent trading in stocks that reported below-consensus earnings is extremely telling. "We've had quite a lot of weak numbers emanating from big tech stocks, and it hasn't really done that much damage," Fleckenstein said.
For instance, while Google's Thursday earnings disappointed the market, and caused the stock to open 4 percent lower, buyers throughout the rest of the day and over the days following brought the stock back nearly exactly to where it was.
In a different sector, Coca-Cola's weak numbers led that stock to open 3 percent lower—before those shares, too, bounced back.