$NIO Inc.(NIO)$Is once again on the downward trend. Why you ask? Market rotation is the answer. As much as we retail investors love and supporta company, even with its continued growth and innovation there is one key factor that moves a stock price. 

That is: Instituional Investors. They are ones that can determine whether a stock goes up or down as they have the means to buy in big volumes. We are not talking about thousands we are talking about multimillion dollar buy ins. Only then will the share of a company rise. 

If now BlackRock, or Vanguard were to pump in $50million which is peanuts to them but a mountain for us. I assure you that the price will fly. For one, the moment institutions make big moves, retail investors will also jump in the bandwagon. It’s that simple. 

For a stock to not be as affected by institutions. Ibelieve we have to wait out the period where retail investors come in and out of a stock to make aquick buck. Once that fizzles out, the true intrinsic value of the stock will surface. 

What are your thoughts?