The emphasis on breadth as a leading indicator of market decline interested me, because I was once a subscriber to the Lowry service on whose work that claim is partly based.

In general, I found Lowry signals too ambiguous and too frequent to be consistently useful, at least for a non-professional like me. But they did point me toward the best single trade of my life. For whatever reason, I interpreted their report of declining breadth in July 2007 as a reason to sell everything. This was at the second to last market high before the coming crash. You don't get many calls like that; though you can improve your odds if you make lots of calls, which is why I finally gave up my Lowry subscription.

But I would be very interested in thoughts about how to measure market breadth in a way that is not so twitchy as to be useless.

Baltassar

Berkshire Hathaway FAQ

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