Breadth Indicator

  

A measure of the number of stocks advancing and declining in the market for a given trading session.

Teddy the Technical Analyst believes that when the number of advancers outpace the number of decliners in a stock index, it presents a breadth indicator...suggesting that investors are bullish.

In an unrelated story, Teddy’s girlfriend believes his breath indicator suggests he had fish sticks for lunc, and that he should eat a mint.

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Finance: What is a thin market?13 Views

00:00

Finance allah shmoop what is thin market peahen happens when

00:07

few stocks are trading on bonds to actually thin is

00:12

illiquid thin is when there just aren't a lot of

00:15

buyers at the given price levels Thin is when trading

00:19

volumes are described by the kindly wise cnbc commentators as

00:25

being anemic Thin is when the headlines ask where have

00:29

all the stock buyers gone Long time passing bob dylan

00:34

i'll go ask your parents finn is it Well not

00:37

this guy Fat is high volumes lots of cash being

00:41

put to work Buying securities fat is big demand to

00:44

buy a big supply of supply Fat or liquid markets

00:48

are generally driven by cash being put to work which

00:52

either came from investors who simply saved their pennies to

00:55

then deploy them in the market's taking on more risk

00:58

by being exposed to more volatility and generally speaking hi

01:02

liquidity even in a world where the stock market is

01:05

flat is generally perceived as bullish or positive voting in

01:09

the future of stock market values Yeah so what does

01:11

all that mean Money being put to work is good

01:14

It adds liquidity It means people are hopeful optimistic lots

01:18

Of opinions Then goto work assessing the upside and downside

01:22

of the market such that the gumball estimate effect is

01:25

in place And if you didn't go to third grade

01:27

in the last decade the gumball estimate game revolves around

01:30

the idea that if many opinions estimate the number of

01:33

gumballs in this big fish tank those numbers get averaged

01:36

and way more often than not The average guesses in

01:39

fact very close to the actual number of gumballs crushing

01:43

down on the innocent guppies and other goldfish below The

01:47

same holds true in the stock market where the aggregation

01:49

of many opinions usually makes for better decisions or at

01:53

least more accurate estimates And in the case where a

01:55

market suddenly grows thin it means that a lot of

01:59

educated well heeled invest astors have been spooked by the

02:02

notion of taking on risk in their portfolios by taking

02:05

their safe cash and risking it in the market So

02:09

they d risk or simply then keep cash in their

02:12

wallets Not wanting to put it to work until better 00:02:15.065 --> [endTime] signs come from you know on high

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