Deteriorating breadth

Breadth trends show deterioration. 

The Market Monitor is updated daily after close and you can see the trends on the MM tab.

Rising markets are characterised by rising breadth. Currently we see deterioration in breadth after hitting breadth high few days ago. 

Stocks had 4 big down days in last 8 days. The number of stocks up 50% in month has deteriorated from peak. Number of stocks up 25% in month has sharply deteriorated which tells you big moves are not happening in the market. Stocks up 13% in 34 days is also deteriorating and might turn negative any day. 

For momentum burst kind of methods overall market breadth matters as weak trends indicate lack of follow through on breakouts. Periods like this can be frustrating and sap your confidence. 

I personally play very cautiously and selectively in these kind of environment. I hate draw downs and always try and make money with minuscule draw downs. 

If you want to make money with little draw downs pay close attention to breadth and make it daily habit to track it. It will save you a bundle.