Why does the market resist the bottom?

It seems that we should give the market a good push so that it falls to the bottom without further delay. My belief is that as soon as the market gets to the bottom, we will see a rebound, a turnaround, a recovery, etc., whatever you call it. Traditional Chinese wisdom: Release the toxic elements so that you can be healthy again.

So why does the market resist the bottom? I guess it's speculation again. They do long in bull and do short in bear. But it's not so simple. You would need volatility; if the market does not go up and go down dramatically, whether you are long or short, your gains should be very limited, I guess.

Does this mean that we should continue to control and curb short-selling particularly the so-called "naked short-selling"? Well, the answer depends on who you are. A genuine investor may insist on curbing short sale but a speculator from Wall Street will hate to hear this.

Wall Street speculators have lost a lot in the housing bubble. They must find some ways to fill up the losses and short-sales may be one way! It's a no-brain gamble and easy thing to do. But still they need volatility before they can gain from short. If the market does not go up and go down in a choppy manner, I don't think there is much to gain by such speculation. That's why those who created the housing and credit crises are those who are resisting the bottom. Once the market falls to the bottom, it may the end of volatility and the end of short sales. The Wall Street speculators may have difficulties to make money to fill up their losses caused by their own creations.

Well, do you think the US government is not aware of such Wall Street plan? They must be fully aware but that's why they are showing leniency to short sellers by extensions, further extensions and further extensions of the rules curbing short sales. They must extend until Wall Street has made more than enough money by short selling to cover the losses they earned by creating the housing and credit crises. Socialism for the rich or super-rich!

Perhaps, it's time for each of us to make a decision, a personal decision, on whether you should give the stock market a big push so that it will reach the bottom without further delay. This will us good at the end.