I used to think short selling had quite an impact however, the short sellers represent a very small minority and don't really bear much influence. The issue is with technology. Around I think 60% of trades done today are via computer algorthims used to create profits for high frequency traders. These cause much more volatility especially with all the stop losses in place which cause domino effects and the sp to go up and down like a roller coaster ride. However, over time with positive sentiment and stronger fundamentals, it will be the simple investor demand, institutional investors buying large stakes reducing the supply and increasing demand which will cause the real upturn.
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