There are many theories out there about the malaise in the market. For whatever reason(s), the volume has been contracting, and particularly so over the past several weeks. As RtS has been pointing out, the "institutions" have not been buying, and if anything, they have been "quieter" than usual the past few weeks.
In the meantime, there is a lot of good news out there in "business land". Growth seems to be everywhere you look. There are several articles and news items put forth by some "institutions" trying to support their negative position for the future by talking/writing about the decreasing "rate of growth".
Well, that may be true - in many areas it must be true - because the base was so low last year at this time, it would be impossible to maintain that rate of growth very far into the future.
Rate of growth may be slowing compared to the very low levels of business last year, but growth itself is still growing and that is all we really need to keep revenue, and profits increasing, but the "entities" that are still trying to talk this market down further, don't want to talk about "growth", they want to talk about a slowing "rate of growth".
One of these days IMO, we are going to start on a good "summer rally" that ought to take the NASDAQ up several hundred points.
Don |
