New 8-month Lows for Nasdaq A-D Line
August 17, 2021
Some people don't understand market breadth.
I'd argue, most people don't.
Deterioration in participation doesn't mean "the market" is now going fall.
The weaker breadth means that "the market" has already been falling. The Average stock performance and median performance will show you that. Also take a look down the cap-scale to see this story.
The deterioration began in February. And as you can see in this chart above, we haven't seen improvement, just further deterioration.
Some stocks are going up.
Most are not.
You can find all the names we're shorting, and which ones we're buying here.