On Using Market Breadth

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  • on July 31st, 2013

It’s probably no secret that studying the message of the market’s components is a focus of mine. Having spent the past few years honing my approach, I have some pretty strong opinions on which measures are useful and how to use them to guide risk-taking.

Andy Nyquist of SeeItMarket has been running a great series where traders share some favored techniques. I was lucky enough to be invited to do the same, and wrote a summary on how I study the (cliche but still true) “market of stocks”. Cliche because it’s up there with “stock pickers market” in the Hall of Fame for sound bites, true because games played with a cap or price-weighted index can mask the state of real market liquidity.

I use this information in everything I do, from sizing positions to setting stops to determining my appropriate level of patience. Hop over to the following link and let me know where I could fill in the blanks in a future post:

Using Market Breadth for Market Positioning

Thanks, Andy…love using the writing process to focus my thoughts!

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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