Investors are still bullish about an improvement in corporate earnings. But the upcoming earnings season is making them timid about buying too much.

There was some anticipation that the number might be positive, lifting some machinery stocks, but when the actual figure came in, those shares fell.

The exchange rate is the biggest concern.

Right now the market is rather quiet, but it will be a problem when investors return after the New Year and trade volume increases.

After the drop … it is likely that investment trusts will be buying shares in blue chips and other companies that are industry leaders.

Buying by foreigners appears to be about half of what it was before…so at current levels the market seems to lack strength and is easily hit by profit-taking.

Ahead of the holidays it is a little tough for investors to build positions. You don’t know what could happen.

For nine straight sessions foreign brokers placed net selling orders. There were concerns about how long selling by foreign investors would last.