HC44, look at the volumes on all of your favourite stocks today. Notice the drop off in volume.
Stocks have moved today purely because of the increase in selling pressure and also due to the decrease in buying power.
Remove shorts from the market, you reduce selling pressure but you also reduce the buying power when the shorts cover. Without shorts on days of panic you will have an excess of sellers as people panic. Volatility increases as there arent as many buyers to prevent serious falls in stocks.
