If you’re still complaining about weak breadth in the stock market, it’s time to find a new slant. Breadth just keeps getting better. When we talk about breadth, we’re talking about how many stocks are participating in a trend. The more stocks moving the same direction, the stronger that trend is. Sure, a handful of large stocks can drive market cap-weighted index indexes higher all by themselves. Sometimes they can do it for a lot longer than people expect. But they can’t do it forever.
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Breadth Keeps Getting Better
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If you’re still complaining about weak breadth in the stock market, it’s time to find a new slant. Breadth just keeps getting better. When we talk about breadth, we’re talking about how many stocks are participating in a trend. The more stocks moving the same direction, the stronger that trend is. Sure, a handful of large stocks can drive market cap-weighted index indexes higher all by themselves. Sometimes they can do it for a lot longer than people expect. But they can’t do it forever.