<> Does the SEC's ban on short selling affect the Elliott wave picture?

Does the SEC's ban on short selling affect the Elliott wave picture?
Category: Specific Markets
Will the SEC's new ban on short selling alter the stock markets' medium-term Elliott wave (and your forecasts)? Can it, for example, prevent the market from reaching the depths of intermediate (3) down anytime soon? Thanks.
Responder: Vadim Pokhlebkin	Date: 9/19/2008
"In a bear market, bullish investors always come to believe that short sellers are 'driving the market down,' when in fact, the decline is almost entirely due to selling from within their own over-invested ranks. Sometimes authorities outlaw short selling. In doing so, they remove the one class of investors that must buy. Every short sale (except when stocks go to zero) must be covered, i.e., the stock or derivative contract must be purchased to close the trade. A ban on short selling creates a market with no latent buying power at all, making it even less liquid than it was. Then it can dribble down day after day, unhindered by the buying of nervous shorts. Like all other bans on free exchange, a ban on short selling hurts those whom it is designed to help." Read complete details now in Conquer the Crash, Chapter 20, "Should You Speculate in Stocks?"

--
______________________________________
Yours Sincerely,

B. SriRam

Director, Reliable Stocks and Shares(India)Ltd

4B,Skylark Apartments,

6,Rutland Gate FifthSt.,

CHENNAI- 600006.

Ph:044-42027089/42010221/28332373
Mobile: +91 98400 63145
____________________________________

--~--~---------~--~----~------------~-------~--~----~
Feedback for the group.
http://spreadsheets.google.com/ccc?key=pMGSuXcWB0fTc5dPBUEvKcw&hl=en

Live Market News www.LiveNewsUpdater.blogspot.com

EagleEyeTrade Group http://groups.google.com/group/EagleEyeTrade

Association of Indian Individual Investor www.groups.google.com/group/Aiii
-~----------~----~----~----~------~----~------~--~---