small caps ran out of steam

Theres seems to be a shortage of buyers in the bottom end of the market.

It seems with small caps the lack of capital to buy and hold is the problem when the steam runs out,ultimately we see the traders bailing out of positions they expected to get in and out of with profit and forcing down the price.

Looking through a lot of stocks Im holding for the long term and others im trading it seems clear all those at the bottom of the market caps are lacking much buying depth.

The question is, do we buy more when others are selling or is it a time to get out of the market altogether and wait on any increase in holdings now till next year.

I have no answers only questions and will look to hold my core positions and buy on bargain prices any of my trading stocks that i have on watch

QAD is one that moved to 4.5 4.6 on traders volume and has since fallen away and looks stuf... to coin a phrase .

I thought it may drop below the 4c resistance and fortunately didnt get caught buying more when it looked like it coulds run up again .

I do think the business appears to be improving and when the sellers stop and markets gets a bit more confidence this is one stock that looks ok for a bottom pick.

Others ive mentioned in this forum like SWG,PRR ,RRS ,OPM Im now bearish as they all seem to be struggling and in all cases ive bailed.

I hold AMP,HHG,MAY,NAB,OXR,PLX,BKM,QAD,CNT,GSP,as my core positions for 2004 and HOPE my gut feel on this market is wrong and we do see some confidence return to the small end.

Im no expert so so your own ressearch and speak to a broker.

This is ust my thoughts and an alternative post to all the bullish posts that appear here every day