Market Cap, page-19

A falling SP is pretty much always a catalyst for hand wringing discussion about all matter of causes. The reasons given for it range from management failure, to the market not getting it, to manipulation etc.

Frankly I think the current malaise is really about market positioning, i.e. mainly the institutions, moving out of the smaller caps, particularly in the past couple of weeks. A week ago I would have thought that AJX was travelling ok. If anything it looked a bit bullish technically following what looked like a bullish reversal after the big pullback and bounce on February 28th and the follow through over the next few days.

The smaller cap indices like the XSO and XEC show them falling away after a double top pattern much like the profile of the AJX trajectory over the same period. Other smaller cap notables also show signs of weakness recently. The top end of the market is holding up better with falling support for the miners being propped up by money moving into the financials.

There is clearly a lack of buyers for AJX at the moment, maybe a good announcement or two will provide some short term impetus but I suspect we are in for a period of softness until this end of the market shows more signs of life.