1) That Buying Volume is low and Selling Volume is high. Hardly surprising since we are in the first meaningful correction since 9th March ’09. Profit taking must be the order of the day. The only certainty is that market factors are dynamic. What’s to say that that we won’t see another run up from here accompanied by big volume. By the time we wait to see that big buy volume … wouldn’t it be kinda like missing the boat?

2)Poor Economic Factors – Since when have the Financial Markets ever been led by the Economic Factors? If this were the case, it would be so much easier for everyone to trade the markets profitably. Would a scenario of the Financials moving up again and then Economic Factors slowly thawing one by one be so impossible? After all that is literally what happens every recovery from a major down turn.

It seems that people thinking the market will plunge again always point to the fact that ‘everyone’ is expecting a Bull Market, as if they are some sort of enlightened contrarian. From all the reports like this one I see and the media commentary it seems to be just the opposite. All the ‘Experts’ and Retail Investors following them seem to be very Bearish. Since the Great Depresion, when did the stock market ever do a Bona Fide double dip from an initial recovery from such a major Bear? The Tech Bubble Burst with extreme over values even after the collapse almost went there, but even then didn’t quite make it. Doesn’t every Bear we ever had give birth to an even Bigger Bull … always? Haven’t we just had the biggest Bear Run in the history of the Stocks since the Great Depression. And aren’t we still a long way off the previous high?

All those Bad Fundamentals connected to the US debt and Bad Credit is still ever present and will come back to bite us in the rear and hard, I’m sure. But maybe that will be the next down cycle, after this natural up cycle has done it’s thing.