A technically-oriented trading blog sprinkled with various (ir)relevant and/or (ir)reverent musings (formerly known as Musings of a Trader)
September 22, 2008
The Ban
It seems to me banning short-selling would only delay the bottoming process if not derail it altogether. One bottoming scenario I can think of is the kind where we stay in a range for a while with false breakouts and false breakdowns and people playing the range. Enough shorts get trapped that a final attempt forces them to cover and spurs a rally that completes the bottoming process. That kind of scenario can't happen if there are no shorts.
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