Short Term Trading Member Forum

[techcharter]

Bliss "Melt-up" then "Melt-down"

I agree with you that after any announcement of short selling ban that the market should move up due to the required buying to cover short positions. Over the long term, I believe the markets will go down because longs exiting positions will have even fewer people to sell their shares. Even if the short selling ban is for a month, or two, the sudden change of rules of the game will sideline shorts. That's why it's the long's exiting positions which ultimately drive down share prices, not shorts.